RMG Annual Report 2013

ANNUAL REPORT 2013
Your

Trusted
Partner
For Health
Vision
We aspire to be your lifetime healthcare partner.
Core Values
COMPASSION
We put you and your well

being at the centre of all that
we do, treating all with respect,
compassion and dignity.
COMMITMENT
We will uphold your trust

by maintaining the highest
professional integrity
and standards.
EXCELLENCE
We will continually seek

advancement and innovation
to achieve better healthcare.
VALUE
We seek always
to create value
for you.
Your

Trusted
Partner
For Health
Our patients health is at the core of what

we do. Committed to delivering the most
comprehensive care and service, our team
of healthcare professionals come together as
one to combine our skills, knowledge, and
experience for you. At Raffles, you are in the
good hands of our multi-disciplinary team of
doctors, nurses, allied health workers, and
healthcare managers.
Holding ourselves to the highest of standards,
we aspire to be your trusted partner for health
for generations to come.
From left to right: Orthopaedic Surgeon Dr Lim Yeow Wai, Principal Radiographer
Goh Eik Heau, Resident Physician Dr Shirley Kwee, Corporate Services Senior
Executive Josh Lim and Staff Nurse Lai Siew Theng.
Raffles Medical Group Annual Report 2013
TEAM-BASED CARE
We dedicate and combine our

skills, knowledge and experience
for your benefit.
Contents
Your Trusted Partner for Health
02 Financial Highlights
Your Health, Our Promise
06 Chairmans Message
08 Board of Directors
10 Further Information on

Board of Directors
12 Senior Management
14 Clinical Leaders
Your Needs, Our Expertise

18 Operations Review
22 Corporate Social Responsibility
40 Financial Report
100 Shareholdings Statistics
102 Notice of Annual General Meeting

Proxy Form
Your Trust, Our Mission

26 Professional Governance
28 Corporate Information
29 Corporate Governance
39 Additional Information Required

by the Singapore Exchange

Securities Trading Limited
Your Trusted Partner For Health
01
Financial Highlights
63%
Revenue
Contribution
by Segment
Hospital
Services
34%
Healthcare
Services
3%
Investment
2013
Performance
At A Glance
Healthcare Services Division
Hospital Services Division
Revenue from Healthcare

Services Division grew 6.2%
to $124.5 million
Revenue from Hospital

Services Division grew
12.4% to $231.3 million
6.2%
Group Revenue
Profit After Tax
Operating Profit
Group achieved 9.4% growth

in revenue to $341.0 million
Profit after tax grew

49.1% to $85.3 million
Operating profit grew by

42.2% to $94.3 million
9.4%
02
12.4%
49.1%
42.2%
Group Revenue ($m)
Group Profit After Tax ($m)

341.0
2013
311.6
2012
14.6
2012
9.36
15.1
2011
8.51
2010
18.0
2013
10.42
2011
2009
Return On Equity (%)

15.24
2012
38.0
2009
Earnings Per Share (cents)

2013
45.5
2010
218.6
2009
50.6
2011
239.1
2010
57.2
2012
272.8
2011
85.3
2013
15.8
2010
7.22
15.2
2009
Financial Summary
2009
$000
2010
$000
2011
$000
2012
$000
2013
$000
218,610
239,123
272,783
311,633
340,989
Earnings Before Interest, Taxes,

Depreciation and Amortisation (EBITDA)
52,220
59,955
66,750
74,258
102,595
Operating Profit
45,277
52,969
59,510
66,355
94,327
Profit Before Tax
45,047
53,096
59,440
66,585
95,238
Profit After Tax
38,033
45,482
50,621
57,209
85,295
7.22
8.51
9.36
10.42
15.24
48.04
54.46
62.51
71.29
85.31
15.2
15.8
15.1
14.6
18.0
Revenue
Diluted Earnings per Share (cents)

Net Asset Value per Share (cents)
Return on Equity (%)
03
Your Health
Our Promise
For 37 years, caring for our
patients has been our top
priority. At Raffles, we channel
our capabilities to ensure that
our patients enjoy the best
care. Seeing you healthy and
happy is our greatest reward.
Dental Surgeon Dr Edgar Kieu encourages his young patient

to take good care of his teeth.
04
05
Chairmans Message
We strive to serve every one

of the 4,470 patients that
walk through our doors daily
as well as we would serve
our brothers and sisters
professionally, honestly,
and with compassion.
Dr Loo Choon Yong
Executive Chairman
and Co-Founder
06
DEAR SHAREHOLDERS
Raffles Holland Village
2013 was another good year for the Group. We

achieved another record revenue of $341.0 million
and growth of 9.4% over the previous year. We
also reported a record profit of $85.3 million, a
49.1% increase over 2012. All divisions of the Group
contributed to this remarkable performance.
The Group completed the acquisition of a site at Holland Village from

DBS Bank on 14 January 2014. The site will be developed into a
5-storey commercial building comprising medical clinics, banking
facilities, retail shops, restaurants, cafes and car parks. It will pave the
way for the Group to expand medical, dental and specialist services in
an attractive location for local and expatriate patients when the project
is completed in 2016. The project is estimated to cost $120 million.
Your trusted partner for health

The year saw the Group adopt a newer and more encompassing tagline
Your Trusted Partner for Health. We believe all our physicians,
nurses, healthcare managers and other staff give of their best to all
our patients whenever they serve. Our clinical quality management
framework together with our service quality management programme
have helped us to achieve high standards of quality care and service.
Because of this, we are able to aspire to be the trusted partner of
all our patients and corporate clients. All of us in Raffles Medical
Group regard the trust of our patients and their family members as
a sacred trust.
We strive to serve every one of the 4,470 patients that walk through
our doors daily as well as we would serve our brothers and sisters
professionally, honestly, and with compassion. This is even more
important when one third of our patients at Raffles Hospital are
foreigners coming from 100 foreign countries to seek our care and
cure.
More than 6,500 corporations have appointed us to provide quality
healthcare to their staff and dependents and quite a few have been
our corporate clients for the past 37 years.
Growth in the Region

Even as the Group continues to grow in Singapore, we have plans to
grow into China and Hong Kong. The Group intends to invest, build
and operate a tertiary hospital in Shenzhen and another in Shanghai.
In the meantime Raffles Medical Shanghai and Raffles Medical Hong
Kong are growing their network of medical centres.
Corporate Social Responsibility

As a corporate citizen, we are deeply conscious of our social
responsibilities. As we grow and command more resources, we
will remember to do more for the less fortunate ones in our society.
Appreciation
We are grateful for the 254 multi-specialty physicians, 615 nurses
and allied health professionals, 62 healthcare managers and 751
ancillary and support staff serving all our patients professionally
and compassionately, as a team. We proudly receive numerous
compliments and accolades commending their good work.
I am confident we will continue to grow in Singapore and into the

region because we take this trust very seriously.
In the year, Board Member Mr Olivier Lim left the Board to focus on
his new and greater responsibilities at CapitaLand. We record our
appreciation to him for his contributions, support and wise counsel
and we wish him great success in his endeavours.
Raffles Hospital Extension
It is also my pleasure to welcome Mr Raymond Lim to our Board. We

look forward to his guidance, support and contributions.
The Group acquired the 1,978 square metres land adjacent to the
Raffles Hospital from Singapore Land Authority on 21 January 2014.
Together with the previously approved intensification of the existing
hospital land, a new extension of approximately 210,000 square feet
will be built on the adjacent land.
The project is estimated to cost $310 million and the additional space
is expected to be ready in 2016. This will provide the hospital space
for expanding its services over the next few years.
Dr Loo Choon Yong

Executive Chairman and Co-Founder
07
Board of Directors
Front row (from left to right): Dr Wee Beng Geok, Dr Loo Choon Yong and Mr Tan Soo Nan.
Back row (from left to right): Mr Kee Teck Koon, Mr Koh Poh Tiong, Mr Raymond Lim Siang Keat and Professor Lim Pin.
DR LOO CHOON YONG

Raffles Medical Group
Dr Loo Choon Yong is the Executive Chairman of Raffles Medical
Group Limited. He co-founded the Group in 1976 and was appointed
to his current position in 1997 when the Group was listed in the
Singapore Stock Exchange. Dr Loo is also an independent director
of CapitaMalls Asia Limited. He is the Chairman of the Asian Medical
Foundation Ltd.
In the area of public service, Dr Loo is appointed by the President
of Singapore since 2006, as the Non-Resident Ambassador to the
Italian Republic. He was also appointed by the Ministry of Trade
and Industry as Chairman of Jurong Town Corporation, Singapores
leading industrial infrastructure specialist spearheading the planning,
promotion and development of a dynamic industrial landscape from
2013. He was the immediate past Chairman of Sentosa Development
Corporation Ltd and Sentosa Golf Club, a position he held from 2007
to 2012. He was also a member of the Board of Trustees of Singapore
Management University (SMU) from 2000 to 2013.
Dr Loo was the Nominated Member of Parliament from 2005 to 2006
and again from 2007 to 2009. He was the former Deputy Chairman
of the Action Committee for Entrepreneurship (ACE), a public-private
collaboration to promote entrepreneurship in Singapore. He also
served as a member of the Government Economic Review Committee
(ERC) from 2001 to 2003 and Chairman of the ERCs Healthcare
Services Working Group (HSWG).
In the area of social service, Dr Loo had been active in the fight against
drug abuse for more than 20 years. He was the former Chairman
of National Council Against Drug Abuse (NCADA) and President of
Singapore Anti-Narcotic Association (SANA).
Besides his medical training, Dr Loo also read Law at the University
of London and is a barrister of Middle Temple.
08
Dr Loo was awarded the Singapore National Day Awards Public Service
Medal (2003) and Public Service Star (2009) and the Distinguished
Service Award (2005) from the Ministry of Home Affairs for his
contributions to Singapores fight against drug abuse.
Dr Loo was awarded the Best Chief Executive Officer (mid-cap
category) of the Singapore Corporate Awards 2010 organised by The
Business Times and supported by the Singapore Stock Exchange.
He was named Businessman of the Year at the Singapore Business
Awards 2013 organised by The Business Times and DHL Express
Singapore.
MR KOH POH TIONG

Lead Independent Director*
Mr Koh Poh Tiong is currently the Non-Executive Chairman and Senior
Advisor of Ezra Holdings Limited. Mr Koh was appointed as Advisor,
Non-Executive and Non-Independent Director to the Board of Fraser
& Neave Limited in April 2013 after retiring as CEO of Fraser & Neave
Limited (Food & Beverage Division) at the end of September 2011
having previously served as Chief Executive Officer of Asia Pacific
Breweries Limited from 1993 to 2008.
He continues to serve as a Director at The Great Eastern Life Assurance
Company Limited, PSA International Pte Ltd and PSA Corporation
Limited, SATS Ltd, United Engineers Limited and Petra Foods Limited.
Mr Koh is currently the Chairman of National Kidney Foundation and
Council Chairman of the Singapore Kindness Movement. In addition,
Mr Koh was also the Chairman of the Agri-Food & Veterinary Authority
and Director at Wildlife Reserves Singapore Pte Ltd, Jurong Bird Park
Pte Ltd and Media Corporation of Singapore Pte Ltd.
Mr Koh is noted for his strong civic involvement and his long-standing
interest in sports and education. He has served on the Singapore
Youth Olympic Games Organising Committee, the Singapore Sports
Council and the Football Association of Singapore, as well as on the
MBA Advisory Board of the Nanyang Technological University. For

his contributions to society and business, Mr Koh was conferred both
the Public Service Medal and the Service to Education Medal in 2007.
He was also named Outstanding Chief Executive of the Year at the
Singapore Business Awards 1998 by DHL and The Business Times.
Mr Koh was also recently conferred the Public Service Star Award
in October 2013 for his contributions as Chairman of the Singapore
Kindness Movement.
He joined the Board on 3 October 2011.
* Mr Koh Poh Tiong was appointed the Lead Independent Director on 2 January 2014.
MR KEE TECK KOON

Chairman of Audit Committee / Independent Director
Mr Kee is currently the Non-Executive Chairman of CapitaCommercial
Trust Management Limited (the Manager of SGX-ST listed
CapitaCommercial Trust). He is also the Non-Executive Chairman
of Changi Airports International Pte Ltd, NTUC First Campus CoOperative Ltd, Alexandra Health Endowment Fund and Lien AID
Limited. He also holds directorship positions in Ascendas Pte Ltd,
NTUC Enterprise Co-operative Limited and NTUC LearningHub
Pte Ltd.
Prior to Mr Kees retirement as the Chief Investment Officer of
CapitaLand Limited (CapitaLand) on 1 July 2009, Mr Kee held several
senior appointments within the CapitaLand Group.
Between April 2003 and January 2007, he was responsible for
overseeing the CapitaLand Groups Financial, Commercial and Retail
businesses. Prior to that, he was the Managing Director and Chief
Executive Officer of The Ascott Limited from November 2000 to
April 2003.
Between 1996 and 2000, he was the Managing Director and Chief
Executive Officer of Somerset Holdings Limited, and was also an
Executive Vice President at Pidemco Land Limited. Prior to that,
Mr Kee held senior management appointments with several other
organisations. He started his career in 1979 with the Singapore Armed
Forces and the Ministry of Defence where he remained until 1991.
Mr Kee holds a Master of Arts in Engineering Science from Oxford
University, United Kingdom.
He joined the Board on 3 January 2012.
DR WEE BENG GEOK

Chairman of Nomination & Compensation Committee /
Independent Director
Dr Wee Beng Geok is Director of the Asian Business Case Centre
at the Nanyang Business School, Nanyang Technological University
(NTU). She holds a PhD in Management Systems and Sciences
from the University of Hull, a Master in Business Administration
from Cranfield Institute of Technology, and a Bachelor of Business
Administration from the University of Singapore.
She has worked both in the corporate sector and academia and held
management positions in various companies.
She joined the Board on 27 November 2000.
MR TAN SOO NAN

Independent Director**
Mr Tan Soo Nan is the Chief Executive Officer of Singapore Pools
(Private) Limited, a wholly owned subsidiary of Singapore Totalisator
Board.
He is the Chairman of the Asia-Pacific Lottery Association (APLA)
and a member of the Executive Committee of APLA and World
Lottery Association. Mr Tan serves on the Board of private and
public listed companies including Singapore Mercantile Exchange
Pte Ltd and OSIM International Ltd. He also sits on several not for
profit committees including holding the post of Vice-President of the
Football Association of Singapore.
Mr Tan was formerly the Chief Executive of Singapore Totalisator
Board, Chief Executive Officer of Temasek Capital (Private) Limited
and Senior Managing Director of DBS Bank and had over 29 years
of experience in the banking industry.
He joined the Board on 28 July 2000.
** Mr Tan Soo Nan was re-designated as a Non-Executive and Non-Independent

Director with effect from 24 February 2014.
PROFESSOR LIM PIN

Professor Lim Pin is Professor of Medicine at National University of
Singapore (NUS) and Senior Consultant Endocrinologist at the National
University Hospital. He was the former Vice Chancellor of NUS from
1981 to 2000, and is accorded the highest academic title of NUS
University Professor in recognition of his work and achievements.
Professor Lim chairs the National Wages Council, Singapore
Millennium Foundation, Special Needs Trust Company, Tropical
Marine Science Institute Management Board and is Adviser to the
Bioethics Advisory Committee. He co-chairs several joint committees
with overseas institutes to establish research centres in the Campus
for Research Excellence and Technological Enterprise (CREATE).
He joined the Board on 19 February 2001.
MR RAYMOND LIM SIANG KEAT

Mr Raymond Lim is Chairman of APS Asset Management and Senior
Advisor to the Swire Group. He is also a Director of several companies
including Government of Singapore Investment Corporation (GIC),
Hong Leong Finance and Insurance Australia Group (IAG).
A Member of the Singapore Parliament since 2001, Mr Lim has
held various ministerial appointments in the Singapore Government
including Foreign Affairs, Trade & Industry, Entrepreneurship, Finance
and Transport from December 2001 to May 2011.
Prior to entering politics in 2001, Mr Lim held various senior positions
in the financial industry including as a Managing Director of Temasek
Holdings, Chief Executive Officer of DBS Securities and Group Chief
Economist of ABN AMRO Asia Securities.
A Rhodes and Colombo Plan scholar, Mr Lim has degrees in Economics
and Law from the Universities of Adelaide, Oxford and Cambridge.
He joined the Board on 25 April 2013.
09
Further Information on Board of Directors

Information as at 31 December 2013
Dr Loo Choon Yong, 64
Mr Kee Teck Koon, 57
Academic and Professional Qualifications:
Bachelor of Arts
Master of Arts in Engineering Science
(University of Oxford, United Kingdom)
Non-Independent Executive Director

Bachelor of Medicine and Bachelor of Surgery,
University of Singapore
Diplomate Member, The College of Family Physicians, Singapore
Diploma in Cardiac Medicine, University of London
Bachelor of Laws (Honours), University of London
Barrister, Middle Temple
Board Committee(s) Served On:

Audit Committee (Chairman)
Current Directorships in Listed Companies
Nomination & Compensation Committee (Member)
1. Raffles Medical Group Ltd

(Non-Executive and Independent Director)
2. CapitaCommercial Trust Management Limited
(Non-Executive Chairman and Non-Executive Director)

(Executive Chairman and Non-Independent Director)
2. CapitaMalls Asia Limited (Lead Independent Director)
Other Major Appointments

1. Ministry of Foreign Affairs
(Non-Resident Ambassador to the Republic of Italy)
2. JTC Corporation (Chairman)
Directorships in Other Listed Companies Held Over the

Preceding Three Years
Nil
MR KOH POH TIONG, 67

Independent Director*

Bachelor of Science (Singapore)

Audit Committee (Member)

2. Ezra Holdings Limited
(Non-Executive Chairman and Senior Advisor)
3. Fraser & Neave Limited
(Non-Executive and Non-Independent Director and Advisor)
4. SATS Limited (Director)
5. United Engineers Limited (Director)
6. Petra Foods Limited (Director)

1. The Singapore Kindness Movement (Chairman)
2. National Kidney Foundation (Chairman)
3. PSA Corporation Limited (Director)
4. PSA International Pte Ltd (Director)
5. The Great Eastern Life Assurance Company Limited (Director)

1. Asia Pacific Breweries Limited (Director)
2. Fraser & Neave Holdings Berhad (Director)
3. Kingway Brewery Holdings Limited (Director)
4. PT Multi Bintang Indonesia Tbk (Director)

1. Temasek International Advisors Pte Ltd (Corporate Advisor)
2. Changi Airports International Pte Ltd (Non-Executive Chairman)
3. NTUC First Campus Co-operative Ltd (Non-Executive Chairman)
4. Ascendas Pte Ltd (Non-Executive Director)

1. CapitaMall Trust Management Limited
(Non-Executive Director)
2. CapitaMalls Malaysia REIT Management Sdn Bhd
(Non-Executive Chairman and Non-Executive Director)
DR WEE BENG GEOK, 65


PhD in Management Systems & Sciences (Hull)
MBA (Cranfield Institute of Technology)
Bachelor of Business Administration (Singapore)

Nomination & Compensation Committee (Chairman)


1. Asian Business Case Centre at Nanyang Business School,
Nanyang Technological University (Director)

Nil
Mr Tan Soo Nan, 65

Independent Director**

Bachelor of Business Administration (Honours) (Singapore)
Associate of The Chartered Institute of Bankers
Program for Management Development, Harvard Business School

* Mr Koh Poh Tiong was appointed the Lead Independent Director and a
Member of the Nomination & Compensation Committee on 2 January 2014.
10
Audit Committee (Member)

(Non-Executive and Independent Director) **
2. OSIM International Ltd (Director)

1. Singapore Totalisator Board (Chief Executive)
2. Singapore Pools (Private) Limited
(Chief Executive Officer and Board Member)
3. Selegie Management Pte Ltd (Director)
4. Raffles Health Insurance Pte Ltd (Director)
5. Singapore Mercantile Exchange Pte Ltd (Director)
6. Caring Fleet Services Limited (Director)
7. Woh Hup Trust (Director)
8. Temasek Education Foundation CLG Limited (Director)
9. Asia-Pacific Lottery Association
(Chairman and Executive Committee Member)
10. World Lottery Association (Executive Committee Member)
11. Football Association of Singapore (Vice President)

Nil
** Mr Tan Soo Nan was re-designated as a Non-Executive and Non-Independent

Director with effect from 24 February 2014.
Professor Lim Pin, 77


MBBChir (Cambridge), MA (Cambridge),
MD (Cambridge), FAM, FRCP (London), FRACP, FRCPE, FACP

Nomination & Compensation Committee (Member)
MR RAYMOND LIM SIANG KEAT, 54


Bachelor of Economics (First Class Honours),
University of Adelaide
Bachelor of Arts in Jurisprudence, Balliol College, Oxford
Master of Law (First Class Honours), Kings College, Cambridge

***

2. Insurance Australia Group Limited
3. Hong Leong Finance Ltd
4. Swire Properties Ltd
(Non-Executive Director)

1. Government of Singapore Investment Corporation Pte Ltd
(Director)
2. APS Asset Management Pte Ltd (Chairman)
3. John Swire & Sons (S.E. Asia) Pte Limited (Senior Advisor)
4. IAG Re Australia Limited

1. Dart Energy Limited (Non-Executive and Independent Director)
2. Dart Energy International Pte Ltd
*** Mr Raymond Lim Siang Keat was appointed a Member of the Audit
Committee on 2 January 2014.


1. National University of Singapore (Professor of Medicine)
2. National University Hospital (Senior Consultant Endocrinologist)
3. Singapore Millennium Foundation Ltd (Chairman)
4. Special Needs Trust Company Limited (Chairman)
5. Singapore-MIT Alliance for Research and Technology (SMART)
(Co-Chairman)
6. Ang Mo Kio Community Hospital Board of Trustees (Chairman)
7. ETH Singapore SEC Ltd (Co-Chairman)
8. TUM CREATE Ltd (Co-Chairman)
9. Berkeley Education Alliance for Research in Singapore (BEARS)
(Co-Chairman)
10. Cambridge Centre for Advanced Research in Energy Efficiency
in Singapore Ltd (CARES) (Co-Chairman)

United Overseas Bank Limited
11
Senior Management
Front row (from left to right): Dr Prem Kumar Nair, Dr Loo Choon Yong and Mr Lui Chong Chee.
Back row (from left to right): Mr Lawrence Lim, Ms Doreen Tan, Dr Joseph Soon, Dr Kenneth Wu, Mr Danny Yap, Mrs Kimmy Goh and Mr Teo Kah Ling.
DR LOO CHOON YONG

Dr Loo Choon Yong is the Executive Chairman of Raffles Medical Group
Ltd. He co-founded the Group in 1976 and was appointed to his
current position in 1997 when the Group was listed in the Singapore
Stock Exchange. Under his leadership, the Group grew from a 2-clinic
practice to a fully integrated healthcare organisation, with a network
of family medicine clinics, a tertiary care private hospital, insurance
services and a consumer healthcare division.
Dr Loo graduated with a MBBS (Bachelor of Medicine, Bachelor of
Surgery) from the University of Singapore and holds a Diploma in
Cardiac Medicine from the University of London. He is a Diplomate
Member of the College of Family Physicians Singapore (MCFPS).
He also read Law at the University of London and is a barrister of
Middle Temple.
Dr Loo was awarded the Best Chief Executive Officer (mid-cap
category) of the Singapore Corporate Awards 2010 organised by The
Business Times and supported by the Singapore Stock Exchange.
He was named Businessman of the Year at the Singapore Business
Awards 2013 organised by The Business Times and DHL Express
Singapore.
Dr Prem Kumar Nair

Chief Corporate Officer, Raffles Medical Group
General Manager, Raffles Hospital
Dr Prem Kumar Nair is the Chief Corporate Officer of Raffles Medical
Group, and the General Manager of Raffles Hospital.
Prior to this, he held various senior management positions in the
Group in areas such as primary care operations, corporate marketing,
12
business development and talent management. He was with the

Ministry of Health before joining Raffles Medical Group in July 1991.
Dr Nair is a physician by training and he graduated with a Master in
Business Administration from Manchester Business School.
Mr Lui Chong Chee

Chief Financial Officer, Raffles Medical Group*
Mr Lui Chong Chee is the Chief Financial Officer of Raffles Medical
Group. He previously held the position of CEO, CapitaLand Financial
Limited up until his resignation on 31 May 2010. During his time
with CapitaLand Limited, he held a succession of senior financial
and operational management positions across the CapitaLand Group.
Prior to joining the CapitaLand Group, he was Managing Director of
Citicorp Investment Bank (Singapore) Limited.
Mr Lui received a Bachelor of Science in 1985 in Business
Administration (magna cum laude) from New York University, USA,
as well as a Master of Business Administration in 1986 in Finance
and International Economics. In 2005, he attended the Advanced
Management Program at Harvard Business School.
* Mr Lui Chong Chee ceased to be Chief Financial Officer on 1 March 2014.
Mr Lawrence Lim
Director, Corporate Development, Raffles Medical Group
Mr Lawrence Lim is the Director of Corporate Development responsible
for healthcare facility and institutional development projects. He was
the General Manager of Raffles Hospital for a period of 10 years from
its inception in 2000 to 2012. During this period, he held concurrent
responsibilities for managing the network of GP and dental clinics

and providing consultancy for overseas healthcare projects.
He has about 31 years experience in the healthcare industry. He
started in the Ministry of Health as the Director of Development
responsible for policy developments for the Medisave Scheme and
health facility development. Prior to joining Raffles Medical Group,
Mr Lim was the Chief Executive Officer of the Singapore General
Hospital from 1992 to 2000, and Chief Executive Officer responsible
for restructuring the Toa Payoh Hospital from 1990 to 1992.
Mr Lim graduated from the University of Birmingham in 1977 with
a BSoc Sc in Mathematical Economics (1st Class Honours). He
obtained a Master of Science in Management in 1988 from Stanford
Universitys Graduate School of Business, and attended the Advanced
Management Program at the Harvard Business School in 1995.
Mrs Kimmy Goh

Group Financial Controller / Company Secretary,
Mrs Kimmy Goh joined Raffles Medical Group in 1992 and holds
the responsibilities of Group Financial Controller since 2005 and was
appointed Company Secretary in 2007.
Dr Soon received his professional training as a Dental Surgeon

at the National University of Singapore. He obtained a Graduate
Diploma in Business Administration from the University of Leicester
and was later awarded a scholarship from the National Healthcare
Group Polyclinics to further his management training through the
Executive Development Program at the Wharton School, University
of Pennsylvania.
Mr Danny Yap
General Manager, Raffles Health Insurance
Mr Danny Yap is the Principal Officer & General Manager of Raffles
Health Insurance. He has been with the company since March 2012.
He is responsible for the day to day development and implementation
of the health insurance business activities. He provides leadership to
drive growth and profitability in the business and is responsible for
the conduct of business and ensures compliance with the insurance
laws and regulations for the Group.
He has more than 26 years experience in the insurance industry,
having held senior management positions with various organisations
including the General Manager for HSBC Insurance (Singapore) Pte
Ltd and the Chief Marketing Officer for AXA Life Singapore Pte Ltd.
Mr Yap has an economics degree from Macquarie University, Australia.
She is responsible for the Groups financial strategy & management,

taxation, treasury and corporate secretarial functions. She is also
involved in corporate planning and investor relations of the Group. Prior
to joining the Group, she had about eight years of audit experience
with two international public accounting firms.
Mrs Goh is a non-practising Member of the Institute of Singapore
Chartered Accountants and is a Fellow of the Association of Chartered
Certified Accountants.
Dr Kenneth Wu
General Manager, Raffles Hospital
Dr Kenneth Wu is responsible for the ambulatory, inpatient and
support operations at Raffles Hospital.
Since joining the Group in 1997, he has progressed through both
clinical and operational management roles, and was the General
Manager of Raffles Medical Clinics prior to his current position. He
was with the Ministry of Health before joining the Group.
Dr Wu graduated with a MBBS (Bachelor of Medicine, Bachelor of
Surgery) from the National University of Singapore in 1989. In 2007,
he graduated with a GDFM (Graduate Diploma Family Medicine) from
the National University of Singapore.
Dr Joseph Soon
General Manager, Raffles Medical Clinics
Dr Joseph Soon is the General Manager for Raffles Medical & Raffles
Dental.
He previously held the position of Director, Projects Office in the
National Healthcare Group; Director, Corporate Development at
the Institute of Mental Health and Director, Dental Division National
Healthcare Group Polyclinics concurrently until he joined Raffles
Medical Group in April 2011. Prior to those appointments, Dr Soon
was the Head of the Strategic Planning Office in NHG Polyclinics
as well as the General Manager for the Singapore Footcare Centre.
Ms Doreen Tan
Director, Human Resource, Raffles Medical Group
Ms Doreen Tan joined Raffles Medical Group as Director, Human
Resource in March 2012. She guides and manages the overall
provision of Human Resource services, policies and programs for the
Group, covering areas such as recruitment and staffing, compensation
and benefits, and employee development and training.
She was formerly from SilkAir (Singapore) Pte Ltd, a subsidiary of
Singapore Airlines Ltd, where she held the position of Vice President
Finance and Human Resource.
Ms Tan graduated from the National University of Singapore with
a Bachelor of Accountancy and is a non-practising Member of the
Institute of Singapore Chartered Accountants.
Mr Teo Kah Ling

Director, Information Technology, Raffles Medical Group
Mr Teo Kah Ling is the Head of Information Technology of Raffles
Medical Group. He is a veteran with 11 years experience in the
healthcare industry.
He previously held the position of Head Systems Services and Principal
Enterprise Architect of Integrated Health Information Systems.
During his time with Integrated Health Information Systems; he was
responsible for all IT Infrastructure related projects for the National
Healthcare Group of Hospitals.
Mr Teo graduated from the National University of Singapore with a
Bachelor of Science (Computer and Information Science) in 1991.
He also has a Master of Business Administration from the University
of Leicester and a Master of Science (Artificial Intelligence) from the
University of Leeds.
13
Clinical Leaders
Dr Alfred Loh
Prof Walter Tan
Dr Yang Ching Yu
Dr Wilson Wong
Senior Clinical Director

Raffles Medical
Medical Director
Raffles Hospital
Medical Director
Raffles Hospital
Medical Director
Raffles Medical
Dr Yii Hee Seng
Dr Onishi Yoichi
Dr Charles Poon
Dr Chng Shih Kiat
Medical Director,
Raffles Health Insurance
Medical Director
Raffles Japanese Clinic
Medical Director
Raffles Medical Shanghai
Medical Director
Raffles Medical
14
Dr Lee Jong Jian

Medical Director
Raffles Hospital
Dr Stanley Liew
Deputy Medical Director
Raffles Hospital
Dr Donald Poon
Dr Motoda Lena
Dr Lee I-Wuen
Medical Director
Raffles Hospital

Raffles Japanese Clinic

Raffles Hospital
Dr Lee Khai Weng,

Michael
Dr Wong Wei Mon
Dr Wong Wen Yao,

Michael

Raffles Medical

Raffles Medical

Raffles Medical
15
Your Needs
Our Expertise
Your healthcare needs evolve
as you journey through life.
To meet your changing needs,
we continue to expand our
suite of healthcare services
and to strengthen our clinical
expertise. Our ability to provide
integrated multi-disciplinary
care means we will always be
there for you.
General Surgeon Dr Wong Kutt Sing and Senior Staff

Nurse Chung Poh Yoke assure the patient that he will be
well taken care of.
16
17
Operations Review
INTRODUCTION
Your Trusted Partner for Health - is Raffles Medical Groups vision
and unwavering promise to its patients who have walked through its
doors for the past 37 years. Excelling in all that it does, the Group
serves the youngest to the oldest patient with compassion and integrity.
In 2013, the Group achieved record revenue of $341.0 million, an
increase of 9.4% as compared to $311.6 million in 2012. Profit after
tax for the Group grew by 49.1% attaining a record $85.3 million.
The Hospital Services division increased its revenue by 12.4% and
Healthcare Services division grew by 6.2%.
RAFFLES HOSPITAL
Growing One-Stop Centres

Raffles Hospital continued to grow as a premier private tertiary hospital
with new specialists and centres catering to the diverse needs of local
and international patients.
In 2013, new specialists from the fields of radiology, cardiology,
endocrinology, neurology, dermatology and orthopaedics joined
Raffles Hospital. With the introduction of more specialists, new
medical centres Raffles Diabetes & Endocrinology Centre, Raffles
Neuroscience Centre, and the reorganised Raffles Skin & Aesthetics
were started.
These new centres harness the strength of our group practice model,
allowing specialists from different specialities to care for patients
in one stop centres, such as plastic surgeons and dermatologists
from Raffles Skin & Aesthetics Centre; neurologists, neurosurgeons
and interventional neuro-radiologists working as a team in Raffles
Neuroscience Centre.
2014 will see the introduction of Nuclear Medicine services, including
a PET/CT scanner, sited within the hospital. This will enable a range
of services and diagnostics in the area of nuclear and molecular
medicine to be introduced in support of specialties in oncology,
cardiology and neurology.
Three public health seminars were organised in partnership with
Channel NewsAsia in 2013. Doctors from various specialties came
together to give comprehensive talks on cardiology and neurology,
allergy, and bone health.
Strong Growth in the Region

Strong foreign patient growth continued to be recorded from the
hospitals traditional markets in Southeast Asia. Markets beyond
Southeast Asia performed well with robust growth. A new Patient
Liaison Office was set up in Surabaya to support the fast growing
East Javanese market.
Overseas patients continued to be referred to Raffles Hospital

through associate networks, international insurance companies,
medical assistance organisations and other partners. Plans to set up
representative and patient liaison offices at suitable locations are in the
pipeline to deliver more timely assistance to these referring sources.
Paving the Way for a Research Based Organisation

To promote and co-ordinate the conduct of clinical trials within Raffles
Hospital, the Clinical Trials Unit (CTU) was set up in 2012. Clinical
trials now constitute an integral component of patient management
especially in the fields of haematology and oncology. These trials allow
4
18
patients access to cutting age drugs that have yet to be approved by

regulatory authorities and help expand the hospitals armamentarium
against certain challenging diseases, and form a critical basis for
innovation in disease treatment. Since its setup, CTU has received
an increased number of clinical trial proposals from pharmaceutical
sponsors and Clinical Research Organisations.
At the same time, Raffles Hospitals Institutional Review Board (IRB)
was established in 2012 to act on behalf of Raffles Hospital to ensure
that all human biomedical research carried out is ethically acceptable.
IRB reviews study application for new studies, assesses the risks
and potential benefits to research subjects and monitors the study
conducts and compliance with Good Clinical Practice.
In 2013, eight industry sponsored clinical studies were accepted
and initiated, while two studies were completed and six studies are
ongoing. CTU targets to support at least 10 new clinical trials per
year from 1 January 2018.
raffles MEDICAL
Expanding Continued Care

Raffles Medical set up more clinics in 2013. Clinics integrated with
dental services were opened in new shopping malls and heartland
malls, namely Bedok Mall, Whitesands and Jurong Point, bringing
quality healthcare services closer to more people in Singapore.
Key human resource professionals from MNCs, SMEs and government
agencies voted Raffles Medical as the Preferred Employee Healthcare
Provider again in a survey conducted by the Human Resources
magazine. This made it a record of seven consecutive years.
Believing strongly in the RafflesOne corporate healthcare solution
concept, Raffles Medical continued to bring the Group Practice
model directly to companies to offer direct and integrated care to
their employees across all healthcare services. This saw an increase
in companies and organisations that chose its corporate healthcare
services while it continued to serve the growing needs of its existing
clients.
New companies in the banking, hospitality, manufacturing, education,
retail, logistics and even healthcare industries were added to its
growing client portfolio in 2013.
raffles DENTAL
3
Growing Smiles that Last

New clinics and successful implementation of marketing strategies
resulted in improved revenue for Raffles Dental. In the last quarter of
the year three new clinics were opened. The division also welcomed
seven new dental surgeons to its team of professionals.
Raffles Dental aims to open another four clinics in the coming year.
1 General Practitioner Dr Kwok Chun Lin suggesting suitable medical treatments

to his patients.
2 Haematologist Dr Daryl Tan, Director of Clinical Trials Unit, studying a blood
sample through a microscope.
3 Dental Surgeon Dr Lee Leing giving essential teeth cleaning tips to a patient.
4 Interventional Radiologist Dr Manish Taneja and Staff Nurse Vicky Lim
conducting a cerebral angiogram procedure on a patient.
19
Operations Review (Contd)

raffles HEALTH
Your General Well Being is Our Priority

Raffles Health, the nutraceutical arm of the Group, continued to
do well in 2013. Leveraging on the Groups medical expertise, it
has expanded its range of products to include Chinese Proprietary
Medicine like Cordyceps and Bai Feng Wan. In addition to product
development, Raffles Health continued to work towards expanding
its presence in Singapore.
raffles MEDICAL INTERNATIONAL

A Trusted Brand of Care in Asia
Raffles Medical Shanghai continued to grow steadily in its total

revenue and patient load. Raffles Childrens Centre was launched
in October 2013 to provide specialised paediatric services while new
dental surgeons were recruited to manage its growing demands.
Raffles Japanese Clinic expanded and relocated to more spacious
premises within the same building.
For the fourth successive time, Raffles Medical Hong Kong has
successfully won the tender for the provision of medical services in
Hong Kong International Airport for a period of five years, with an option
to extend for another period of two years. Under the new contract,
the services offered will be expanded to include traditional Chinese
medicine, travel medicine and 24-hour medical concierge services in
order to serve travellers, the airport working community and nearby
residents better. The re-appointment would further consolidate its
presence in Hong Kong as the leading medical service provider to
the aviation industry.
Located in the heart of Central, the clinic in Li Dong building was

relocated to a prime office tower in New World Tower 1. This will
provide more accessibility and a more conducive environment to
our corporate patients in the vicinity.
Raffles Health Insurance

Financing Your Health
Raffles Health Insurance (RHI) adopted RafflesOne as a new

marketing model, integrating healthcare services and healthcare
financing seamlessly in its Employee Benefits Solution for corporate
customers. This model has already yielded positive results in acquiring
few major accounts since its launch in the second half of 2013.
RHI achieved strong revenue growth with the expansion of its group
employee benefits business and RHI-Bupa regional and global health
insurance business.
20
Raffles HealthCARE Institute

Empowering Minds
Raffles Healthcare Institute was set up on 1 July 2013 to consolidate

and expand the training of doctors, nurses, allied health personnel
and healthcare managers. This initiative supports the Groups staff
development needs and contributes to the training of local and foreign
healthcare manpower.
As the training arm of the Group, Raffles Healthcare Institute draws
on the expanding base of expertise and clinical resources available
throughout the Group.
Going forward, Raffles Healthcare Institute plans to increase the range
and depth of the training programmes, as well as develop its internal
faculty and new learning technologies (including e-learning) to meet
the growing and changing needs of its stakeholders.
CORPORATE DEVELOPMENT
Raffles Hospital Extension
A design competition was held for the Raffles Hospital Extension

project in mid of 2013 involving well-known local and international
design firms. The successful consultant was appointed in late 2013
to commence in earnest the design and planning of the hospital
extension on the adjoining vacant land plot. Currently, discussions
with the authorities and technical departments are underway and
the relevant planning approval is expected to be obtained by mid
2014. When completed, an additional 210,000 square feet of floor
area will be made available.
Raffles Holland Village

In July 2013, the Group obtained the Provisional Planning Permission
from URA to redevelop the existing POSB building at 100 Taman
Warna to a five-storey commercial building comprising medical clinics,
shops, restaurants and car park. Demolition and construction works
are expected to commence at the site following the announcement
of the successful land transfer. Approximately 9,000 square feet of
medical clinic space will be available by early 2016 when the project
is completed.
Your Trusted Partner for Health

Through its integrated care model, Raffles provides comprehensive
and coordinated care from delivery, infancy and childhood through
adult life to the golden years of graceful ageing.
Raffles has been a trusted healthcare brand over the years and will
remain so to our patients and their loved ones.
1 Raffles Health expanded its range of products to include Chinese Proprietary

Medicine like Cordyceps and Bai Feng Wan.
2 With a new marketing model, corporate clients of Raffles Health Insurance
are able to enjoy seamless healthcare financing solutions.
3 An expatriate patient is being consulted by Resident Physician Dr Sarah
Jane Packer.
4
4 An artists impression of Raffles Medical Groups five-storey building at Taman

Warna comprising medical clinics, shops, restaurants and car park.
21
Corporate Social Responsibility

Raffles Medical Group (RMG) is committed to business policies
and operations that reflect the interests of its stakeholders including
investors, customers, employees, the community and the environment.
The Group is committed to continuous improvement in its Corporate
Social Responsibility (CSR) strategy, encouraging its business partners
to strive for matching performance, acting in a socially responsible
way, continually improving its performance and meeting all relevant
legislations, and encouraging staff to be mindful of the effect of their
actions on any natural resource.
CORPORATE GOVERNANCE
The Group shares and declares information on personal and corporate
conflicts of interest and seeks guidance, where necessary, from higher
authority before acting. It is committed to ensuring that business is
conducted in all respects according to rigorous ethical, professional
and legal standards. All the laws that regulate and apply will be
complied with.
All groups and individuals with whom it has a business relationship
will be treated in a fair, open and respectful manner. Competition
will be reasonable and based upon the quality, value and integrity
of the products and services being supplied.
Feedback on performance will be actively sought, and the Group
continually reviews all activities to ensure that best practice is observed
at all times. It allows patients and vendors to give feedback on its
performance and ensures that all comments are analysed, responded
to and where appropriate, acted upon. In addition, action plans will
be developed to ensure continuous improvement is achieved.
HEALTH & SAFETY

As a healthcare organisation, RMG aims to provide and maintain a
safe and healthy work environment for its employees in compliance
with legislative requirements. It is committed to:
Comply with all statutory safety and health requirements, and other
existing standards and guidelines
Eliminate hazards or adopt reasonably practicable means to reduce
the risk of injury to its employees to an acceptable level
Seek involvement of various stakeholders to effectively implement
Workplace Safety and Health Policy objectives
Continual improvement through on-going review of Workplace
Safety and Health mechanisms
Provide adequate resources to ensure compliance to Workplace
Safety and Health Regulations
ENVIRONMENT
RMG endeavours to reduce its impact on the environment by:
Conducting audits and taking corrective actions to reduce adverse
environmental impact
Promoting the efficient use of resources and energy
Providing environmental awareness training for its employees
Continually improving the management of our surrounding
environment
Nature and Conservation

As a responsible corporate citizen and in its bid to care for the
environment it operates in, Raffles Hospital has adopted several
22
green initiatives to reduce energy consumption in the building. All

lightings in the hospital are being changed to energy saving bulbs and
tubes progressively. These energy saving lights provide the same lux
density and vision capability is not compromised. It is estimated that
led to a reduction of 30,000 KW in energy consumption every month.
In addition, Raffles Hospital switches off unused air conditioning units
for floors which are unoccupied during the night and on weekends.
The Group endeavours to ensure that business operations comply with
all applicable environmental, legal, health and safety requirements.
The Group works closely with the Workplace Safety and Health
Council, Singapore Civil Defence Force, Public Utilities Board, National
Environment Agency and other relevant authorities to adopt the best
practices for environment sustainability.
HUMAN RIGHTS
As a group, RMG supports and respects the protection of internationally
proclaimed human rights. In line with this, the Group prohibits the use
of child labour and any forms of forced labour, and does not accept
the use of child or forced labour by our suppliers or subcontractors.
FAIR EMPLOYMENT PRACTICES

The Group aims to eliminate discrimination on any grounds and
promotes equal opportunities and a fair working environment.
The Group adopts a human resources policy that combines a rolebased system that grades individual employees based on the extent
of their roles, with a performance-based approach to evaluation
and compensation based on outcomes of job performance within
their roles.
The Group respects the right of employees to adhere to normal or
agreed working hours in accordance with Company Policy established
in compliance with the laws and regulations.
ETHICS AND ETHICAL TRADING

The Group will ensure that its employees uphold professional
standards and workplace standards and behaviours consistent with
the Companys requirements.
It is committed to working against corruption in all its forms, including
extortion and bribery.
VENDORS (SUPPLIERS, SUBCONTRACTORS AND

OTHER SERVICE PROVIDERS)
The Group works with vendors to help it achieve its policy aspirations
in the delivery of products and services. To this end, it encourages
vendors to adopt responsible business policies and practices for
mutual benefit.
The Group is committed to ensuring that the welfare of workers and
labour conditions within its supply chain meet or exceed recognised
standards. Where necessary, it will exert procurement pressure to
ensure that all its vendors behave in a socially responsible way. This
includes environmentally-friendly products and making sure that
workers are treated properly.
CHARITY
The Group strives to be a good corporate citizen. Over the years,
RMG has developed various CSR programmes to make a difference
in the lives of many.
Rochore Kongsi Home for the Aged

Doctors and dentists from RMG have been visiting the Rochore
Kongsi Home for the Aged on a monthly basis since 2009 to provide
medical advice and consultation to the residents. The doctors refer
residents from the Home to Raffles Hospital for X-rays, laboratory
tests, medication, and further consultation with specialist doctors
when required.
To further equip the Management Committee and staff of Rochore
Kongsi, a Psychiatrist from Raffles Counselling Centre conducted
a 3-hour workshop on How to engage those with dementia. This
session held on 7 December 2013 provided the staff with useful
tips to know how to better manage dementia residents in the Home.
Share-A-Gift
As an outreach to the less-privileged in the community, close to 50
staff from RMG came together on 7 December 2013 in support of
the annual Share-A-Gift project by The Boys Brigade. A total of 17
cars lined up at Kallang to deliver 170 bags of food supplies to 100
under-privileged families. The participants including children of the
staff, spent several hours delivering the food supplies.
Christmas Charity
The Group organised its first group-wide charity event on 11 December
2013. Staff teamed up to sponsor items ranging from groceries to
useful gifts for the beneficiaries of four adopted charities. The items
collected reached a total of 252 elderly residents from Peacehaven and
Rochore Kongsi, as well as 313 children and teens from Gracehaven
and Prison Support Services. The response was overwhelming as
many staff stepped forward to spread the Christmas cheer to the
beneficiaries through their generous giving.
EDUCATION
Bursary Award
The RMG Bursary was introduced in 2011 to provide financial
assistance to employees for their childrens education as access to
a good education allows their children a head start in life and career.
Since then, a total of 13 bursaries had been awarded.
Scholarship
RMG grooms and nurtures dedicated individuals with the interest to
pursue a career in healthcare. To this end, the Raffles Medical Group
Scholarship aims to award 35 scholarships over 5 years to promising
students who wish to pursue nursing, pharmacy, biomedical sciences,
accountancy, and business management courses. $2.1 million was
set aside for the scholarship programme that started in 2012. In the
first year, five scholarships were awarded to the first batch of RMG
scholars. An additional eight scholarships were awarded in 2013.
1 RMG maintains a safe and healthy work environment for its employees.
2 Green initiatives are adopted to reduce energy consumption in the Raffles
Hospital building.
3 Senior Physician Dr Melvyn Wong providing medical advice to a resident at
Rochore Kongsi Home for the Aged.
4 Staff of RMG getting ready for the flag off in support of the annual Share-AGift project by The Boys Brigade.
5 The first batch of students who were awarded with the Raffles Medical Group
Scholarship.
23
Your Trust
Our Mission
The Raffles brand is synonymous
with quality and excellence.
We serve with compassion
and professionalism. Through
constant advancement and
innovation, we realise our
mission of enhancing health
and providing the best in total
healthcare.
Neurologist Dr N V Ramani is happy to see his patient

recovering well and ready to be discharged.
24
25
Professional Governance
MEDICAL BOARD
SURGICAL AUDIT COMMITTEE
Dr Loo Choon Yong (Advisor)

Professor Walter Tan (Chairman)
Dr Alfred Loh
Dr Yang Ching Yu
Dr Lee Jong Jian
Dr Donald Poon
Dr Lee I-Wuen
Dr Stanley Liew
Dr Prem Kumar Nair (Secretary)
Dr JJ Murugasu (Chairman)
Professor Edward Tock (Co-Chairman)
Dr Yang Ching Yu
Dr Law Ngai Moh
Dr Lee I-Wuen
Dr Eric Teh
Dr Donald Poon
Dr Lim Yeow Wai
Dr Lim Kok Bin
Ms Teo Poh Lin
Dr Ho Kok Yuen
Dr Manish Taneja
Dr Alfred Loh (Ex-Officio)
Professor Walter Tan (Ex-Officio)
Ms Kartini Sameejan (Secretary)
CREDENTIALLING &
PRIVILEGING COMMITTEE
Dr Yang Ching Yu (Chairman)
Dr Khoo Chong Yew
Dr Alfred Loh
Dr S Krishnamoorthy
Professor Walter Tan (Ex-Officio)
ETHICS COMMITTEE
Dr JJ Murugasu (Chairman)
Professor Walter Tan
Professor Nambiar Rajmohan
Professor Edward Tock
Associate Professor Chew Chin Hin
Dr Alfred Loh
Reverend Dr Isaac Lim
Mr Mike Barclay
Mr Victor Lye
Mr Moiz Tyebally
Dr Yang Ching Yu (Chairman)

Dr Kelvin Thia
Dr Teo Sek Khee
Dr Yii Hee Seng
Dr Joshua Kua Hai Kiat
Dr Rupert See Hock Chuan
Dr Melvyn Wong Chung Pheng
Ms Koi Poh Leng
Ms Yee Earn Hwa (Secretary)
INFECTION CONTROL COMMITTEE
Dr Alfred Loh (Chairman)

Dr Prem Kumar Nair (Co-Chairman)
Dr JJ Murugasu
Professor Walter Tan
Dr Yang Ching Yu
Dr Wilson Wong
Dr Tan Hsiang Lung
Ms Doreen Tan
Mdm Tan Lay Geok
Ms Yee Earn Hwa
Ms Kartini Sameejan
Ms Pang Yen Yin (Secretary)
Dr Teo Sek Khee (Chairman)

Dr Leong Hoe Nam (Advisor)
Dr Wong Kutt Sing
Dr Lynette Ngo Su Mien
Dr Jeffrey Sng
Ms Ong Suat Kien
Ms Roselyn Wong Kim Tee
Ms Lee Lai Fun
Mr Heng Wee Khim
Ms Tee Yen Yen
Ms Cheng Lee Hong
Mr Lee Meng Tuck
Ms Ng Lee Min
Ms Kartini Sameejan
Ms Wang Yang (Secretary)
MEDICAL AUDIT COMMITTEE
OPERATING THEATRE COMMITTEE
Dr Chan Choong Chee (Chairman)

Dr Teo Sek Khee
Dr Ng Wai Lin
Dr Veronica Toh
Dr Daryl Tan
Dr Chng Shih Kiat
Ms Lilian Yew
Dr Alfred Loh (Ex-Officio)
Ms Kartini Sameejan (Secretary)
Dr Eric Teh (Chairman)

Dr Yang Ching Yu
Dr Lee Jong Jian
Dr Stephen Lee
Dr Lim Yeow Wai
Dr Wong Him Choon David
Dr Sheila Loh
Dr Lim Kok Bin
Mdm Tan Lay Geok
Ms Kartini Sameejan
Ms Teo Poh Lin
Ms Lee Lay Tin (Secretary)
QUALITY COMMITTEE
26
PHARMACY & THERAPEUTICS COMMITTEE
BLOOD TRANSFUSION &

TISSUE REVIEW COMMITTEE
Dr Ekachai Danpanich (Chairman)
Dr Daryl Tan
Dr Watt Wing Fong
Dr Jean Ho May Sian
Ms Sadiah Mohd Yusof
Ms Faeezah Bte Hamzah
Ms Pang Yen Yin
Ms Louisa Chew (Secretary)
MEDICAL BOARD
Dr Wilson Wong (Chairman)
Dr Chng Shih Kiat (Co-Chairman)
Dr Alfred Loh
Dr Yii Hee Seng
Dr Salleh Omar Alkhatia
Dr Hoo Kai Meng
Dr Chin Min Kwong
Dr Choo Shiao Hoe
PATIENT CASE REVIEW COMMITTEE

Dr Ng Chin (Chairman)
Dr Alvin Ng Chee Keong (Co-Chairman)
Dr Chong Yong Yeow
Dr Tan Hsiang Lung
Ms Liu Wei Wei
Ms Yee Earn Hwa
Ms Ong Suat Kien
Ms Faeezah Bte Hamzah (Secretary)
CRITICAL CARE COMMITTEE

Dr Chan Choong Chee (Chairman)
Dr Steve Yang
Dr Alvin Ng Chee Keong
Dr Wong Kutt Sing
Dr Veronica Toh
Dr Ho Kok Yuen
Ms Lilian Yew
Ms Ong Hui Chin
Ms Mary Jane Mendoza Sangalang
Ms Poh Lay Hiang Yasmine (Secretary)
27
Corporate Information
BOARD OF DIRECTORS
COMPANY SECRETARY
Dr Loo Choon Yong (Executive Chairman)

Mr Koh Poh Tiong (Lead Independent Director)
Mr Kee Teck Koon (Independent Director)
Dr Wee Beng Geok (Independent Director)
Mr Tan Soo Nan (Non-Independent Director)
Professor Lim Pin (Independent Director)
Mr Raymond Lim Siang Keat (Independent Director)
Mrs Kimmy Goh
AUDIT COMMITTEE
AUDITORS
Mr Kee Teck Koon (Chairman)

Mr Koh Poh Tiong
Mr Tan Soo Nan
Mr Raymond Lim Siang Keat
KPMG LLP
Chartered Accountants
16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
Partner-in-Charge: Ms Kum Chew Foong
Year of Appointment: 2009
NOMINATION & COMPENSATION

COMMITTEE
Dr Wee Beng Geok (Chairman)
Mr Koh Poh Tiong
Professor Lim Pin
Dr Loo Choon Yong
Dr Prem Kumar Nair (Secretary)
SHARE REGISTRAR
M & C Services Private Limited
112 Robinson Road
#05-01
Singapore 068902
PRINCIPAL BANKERS
DBS Bank Ltd
Oversea-Chinese Banking Corporation Limited
REGISTERED OFFICE
585 North Bridge Road
Raffles Hospital #11-00
Singapore 188770
Tel : 6311 1111
Fax : 6338 1318
Email: enquiries@raffleshospital.com
BOARD OF DIRECTORS
AUDITORS
Dr Loo Choon Yong (Chairman)

Mr Tan Soo Nan (Non-Executive Director)
Mr N Ganesan s/o N N Pillay (Independent Director)
Mr Ngiam Tong Dow (Independent Director)
Mr Edmund Koh Kian Chew (Independent Director)
KPMG LLP
16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
Partner-in-Charge: Mr Venkat Iyer
Year of Appointment: 2005
COMPANY SECRETARY
Mrs Kimmy Goh
PRINCIPAL BANKERS
DBS Bank Ltd
Oversea-Chinese Banking Corporation Limited
28
Corporate Governance
CORPORATE GOVERNANCE STATEMENT
The Directors and Management of Raffles Medical Group (RMG) are committed to comply with the Code of Corporate Governance
(the Code) issued by the Corporate Governance Committee in 2012 to enhance the Groups existing governance regime.
To ensure greater transparency and protection of shareholders interests and with the increasing emphasis on risk governance and
heightened risks as well as greater complexity in the business and economic environment, the duties and responsibilities of the Audit
Committee have been expanded to assist the Board in overseeing the governance of risk in the Groups business.
This statement outlines the main corporate governance practices that have been in place throughout the financial year.
PRINCIPLE 1: THE BOARDS CONDUCT OF ITS AFFAIRS

Every Company should be headed by an effective Board to lead and control the Company. The Board is collectively responsible
for the long-term success of the Company. The Board works with Management to achieve this objective and Management remains
accountable to the Board.
The primary role of the RMG Board of Directors (the Board) is to protect and enhance the long-term value of its shares for all the
shareholders. To fulfil this role, the Board is responsible for the overall corporate governance of RMG and its subsidiaries (the Group)
including setting its strategic and entrepreneurial direction, establishing goals for Management and monitoring the achievement of
these goals. The Board currently holds four scheduled meetings each year. In addition, the Board also meets to discuss strategy and
holds meetings at such other times as may be necessary to address any specific significant matters that may arise. The Articles of
Association of the Company also provides for telephonic and video conference meetings to facilitate meetings among the Directors.
We have disclosed the attendance of the Directors at meetings of the Board and Board Committees, as well as the frequency of such
meetings in this Report.
The Board has decided that certain matters shall always be approved by the Board. These include:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
the approval of quarterly results announcements;

the approval of the annual accounts;
the declaration of interim dividends and proposal of final dividends;
convening of Shareholders Meetings;
the approval of corporate strategy and direction of the Group;
material acquisitions or disposals;
the approval of transactions involving a conflict of interest for a substantial shareholder or a Director or interested person
transactions; and
(h) the appointment of new Directors.
All other matters are delegated to Committees whose actions are reported to and monitored by the Board.
BOARD COMMITTEES
To assist the Board in the execution of its duties, the Board has delegated specific functions to the following Committees:
(a) Nomination & Compensation Committee (NCC); and
(b) Audit Committee (AC).
INDUCTION AND TRAINING OF DIRECTORS
There is an induction for incoming Directors joining the Board on the discharge of their duties and to introduce the Groups business
and governance practice and arrangements, amongst others. Upon appointment, a new Director receives a brief on the Directors
duties, responsibilities and disclosure obligations as a Director. He or she is also briefed on key disclosure duties and statutory
obligations. As part of the induction programme, the new Director gains an understanding of the Groups management, business
and governance practices through induction briefings by members of senior management on the Groups various businesses and
support functions. Directors are also updated on a regular basis on accounting and regulatory changes. Directors may at any time
request for further explanation, briefing or informal discussion on any aspects related to the Companys operations.
29
Corporate Governance (contd)

PRINCIPLE 1: THE BOARDS CONDUCT OF ITS AFFAIRS (CONTD)
ATTENDANCE AT BOARD AND BOARD COMMITTEE MEETINGS
The table below sets out the attendance at meetings of the Board and Board Committees convened in the course of the year:
Board
Name of Director
Dr Loo Choon Yong (1)

Mr Koh Poh Tiong (2)
Mr Kee Teck Koon (3)
Dr Wee Beng Geok (1)
Mr Tan Soo Nan
Professor Lim Pin
Mr Lim Tse Ghow Olivier (4)
Mr Raymond Lim Siang Keat (5)
No. of
Meetings
Held
4
4
4
4
4
4
4
4
Audit Committee
No. of
Meetings
Attended
4
4
4
4
4
4
2
3
No. of
Meetings
Held
4
4
4
4
4
NA
NA
NA
No. of
Meetings
Attended
1
3
3
1
4
NA
NA
NA
Nomination & Compensation

Committee
No. of
No. of
Meetings
Meetings
Held
Attended
1
1
NA
NA
NA
NA
1
1
NA
NA
1
1
NA
NA
NA
NA
Notes:
(1) Both Dr Loo Choon Yong and Dr Wee Beng Geok retired from the AC on 24 April 2013.
(2) Mr Koh Poh Tiong was appointed as a Member of the AC on 24 April 2013. Mr Koh was also appointed the Lead Independent Director and a Member of the NCC on
2 January 2014.
(3) Mr Kee Teck Koon was appointed as Chairman of the AC on 24 April 2013.
(4) Mr Lim Tse Ghow Olivier ceased to be an Independent Director on 29 June 2013.
(5) Mr Raymond Lim Siang Keat was appointed to the Board on 25 April 2013 and a Member of the AC on 2 January 2014.
NA: Not applicable
PRINCIPLE 2: BOARD COMPOSITION AND GUIDANCE

There should be a strong and independent element on the Board, which is able to exercise objective judgement on corporate
affairs independently, in particular, from Management and 10% shareholders. No individual or small group of individuals should
be allowed to dominate the Boards decision making.
The names of the Directors of the Company in office at the date of this Report are set out below. The Board has objectively reviewed
its composition and is satisfied that such composition is appropriate. In any event, the Board will constantly examine its size with a
view to determine the impact upon its effectiveness.
As at the date of this Report, the Board comprises seven suitably qualified members:
Name of Director
Date of First
Appointment
Dr Loo Choon Yong
16/05/1989
Mr Koh Poh Tiong (1)
03/10/2011
Mr Kee Teck Koon
03/01/2012
Dr Wee Beng Geok
27/11/2000
Mr Tan Soo Nan (2)
28/07/2000
Professor Lim Pin
19/02/2001
25/04/2013
30
Nature of
Appointment
Executive/
Non-Independent
Non-Executive/
Independent
Non-Executive/
Independent
Non-Executive/
Independent
Non-Executive/
Non-Independent
Non-Executive/
Independent
Non-Executive/
Independent
Date of Last
Re-election as
Director
Position
Held on the
Board
29/04/2011
Chairman
NA
Lead Independent
Director
NA
Director
23/04/2013
Director
23/04/2013
Director
23/04/2013
Director
NA
Director
Other
Functions
Member of
NCC
Member of
AC and NCC
Chairman of
AC
Chairman of
NCC
Member of
AC
Member of
NCC
Member of
AC

PRINCIPLE 2: BOARD COMPOSITION AND GUIDANCE (CONTD)
Notes:
(1) Mr Koh Poh Tiong was appointed the Lead Independent Director and a Member of the NCC on 2 January 2014.
(2) Mr Tan Soo Nan was re-designated as a Non-Executive and Non-Independent Director with effect from 24 February 2014.
(3) Mr Raymond Lim Siang Keat was appointed as a Member of the AC on 2 January 2014.
NA: Not applicable
Particulars of the interests of Directors who held office at the end of the financial year in shares, debentures, warrants and share
options in the Company and in related corporations (other than wholly-owned subsidiaries) are set out in the Directors Report.
INDEPENDENT MEMBERS OF THE BOARD
There is a strong and independent element in the Board. Five of the seven members of the Board are Independent Directors namely
Mr Koh Poh Tiong, Mr Kee Teck Koon, Dr Wee Beng Geok, Professor Lim Pin and Mr Raymond Lim Siang Keat. The criterion of
independence is based on the definition given in the Code. The Board considers an Independent Director as one who has no
relationship with the Company, its related corporations, its 10% shareholders or its officers that could interfere, or be reasonably
perceived to interfere, with the exercise of the business judgement of the Directors independently for the best interests of the Group
as a whole.
As Non-Executive members of the Board, the Independent Directors exercise no management functions in the Company or any of
its subsidiaries. Although all the Directors are equally responsible for the performance of the Group, the role of the Non-Executive
Directors is particularly important in ensuring that the strategies proposed by the Executive Management are fully discussed and
rigorously examined by taking into account the long-term interests, not only from the perspective of all shareholders, but also of
employees, customers, suppliers and the many communities in which the Group conducts its business.
The Board considers its Non-Executive Directors to be of sufficient calibre and number. Their views are of sufficient weight that no
individual or small group can dominate the Boards decision-making processes. The Non-Executive Directors have no financial or
contractual interests in the Group other than by way of their fees, shareholdings and participation in the Employees Share Option
Scheme of the Company as set out in the Directors Report.
Dr Wee Beng Geok and Professor Lim Pin have served for a continuous period of more than 9 years. In compliance with the guidelines,
the independence of the two Directors had been subjected to rigorous review by the Board. In spite of their length of service, these
Directors are still considered independent. Their roles are of non-executive nature and they are also not involved in the day-to-day
business and operations of the Group. Over time, they have also developed independent and invaluable insights into the Groups
management. These Directors have also demonstrated objectivity in character and judgement in the discharge of their duties as
Directors of the Company.
PRINCIPLE 3: CHAIRMAN AND CHIEF EXECUTIVE OFFICER (EXECUTIVE CHAIRMAN)

There should be a clear division of responsibilities between the leadership of the Board and the executives responsible for managing
the Companys business. No one individual should represent a considerable concentration of power.
Notwithstanding the relevant provisions of the Code, the Board is of the view that it is in the best interests of the Group to adopt a
single leadership structure i.e. where the Chief Executive Officer and the Chairman of the Board, is the same person. This is to ensure
that the decision-making process of the Group would not be unnecessarily hindered.
The Executive Chairman is Dr Loo Choon Yong who is responsible for the oversight of the day-to-day operations of the Group and
concurrently exercise control over the quality, quantity and timeliness of information flow between Management and the Board. He has
played an instrumental role in developing the business of the Group and has also provided the Group with vision and strong leadership.
All major decisions made by the Executive Chairman are reviewed by the Board. His performance and remuneration are reviewed
periodically by the NCC. As the Board and NCC both consist mainly of Independent Directors, the Board believes that there are
adequate safeguards in place against having a centralisation of power and authority in a single individual.
Additionally, the General Managers of each business unit are also responsible for the execution of the Groups strategies and policies.
They are also accountable to the Board for the conduct and performance of their respective business operations.
31

PRINCIPLE 3: CHAIRMAN AND CHIEF EXECUTIVE OFFICER (EXECUTIVE CHAIRMAN) (CONTD)
LEAD INDEPENDENT DIRECTOR
With effect from 2 January 2014, the Board has appointed Mr Koh Poh Tiong as the Lead Independent Director. The Lead
Independent Director is appointed by the Board to serve in a lead capacity to coordinate the activities of the Non-Executive Directors
in circumstances where it would be inappropriate for the Executive Chairman to serve in such capacity, and to assist the Executive
Chairman and the Board to assure effective corporate governance in managing the affairs of the Board and the Company. The role
of the Lead Independent Director includes meeting with the Non-Executive Directors without the Executive Chairman present to
appraise the Executive Chairmans performance and on such other occasions as are deemed appropriate. He would be available to
shareholders where they have concerns relating to matters which contact through the normal channels of the Executive Chairman
or Chief Financial Officer (CFO) has failed to resolve the issues or for which such contact is inappropriate.
PRINCIPLE 4: BOARD MEMBERSHIP

There should be a formal and transparent process for the appointment and re-appointment of Directors to the Board.
The Board members are selected on the basis of their character, business experience and acumen. Where a Director has multiple
board representations, the NCC will evaluate whether or not the Director is able to and has been adequately carrying out his or her
duties as a Director of the Company. As a guide, Directors should not be represented on more than six boards listed on any Exchange
(excluding nominee directorship of listed companies for which the Director is an employee). The final approval of a candidate is
determined by the Board. In appointing Directors, the Board considers the range of skills and experience required in the light of:
(a)
(b)
(c)
(d)
the geographical spread and diversity of the Groups businesses;

the strategic direction and progress of the Group;
the current composition of the Board; and
the need for independence.
Key information regarding the Directors is set out on pages 8 to 11 of the Annual Report.
The Companys Articles of Association provides that one-third of the Directors shall retire from office and subject themselves to reelection at the Annual General Meeting. All Directors are required to retire from office at least once in every three years.

PRINCIPLE 5: BOARD PERFORMANCE

There should be a formal annual assessment of the effectiveness of the Board as a whole and its board committees and the
contribution by each Director to the effectiveness of the Board.
The NCC reviews the Boards performance on an annual basis, based on performance criteria as agreed by the Board, and decides
how this may be evaluated. The Board has implemented a process for assessing the effectiveness of the Board as a whole, its Board
Committees and for assessing the contribution by Directors to the effectiveness of the Board. This process includes having Directors
complete a Questionnaire seeking their views on various aspects of Board performance, such as Board composition, information,
process and accountability. The Company Secretary compiles the Directors responses to the Questionnaire into a consolidated report.
The report is discussed at the NCC meeting and also shared with the entire Board.
During the year 2013, the Questionnaire on the performance of the Board and Board Committees was reviewed based on best practices
on board evaluation and revised to take into consideration key issues and areas the Board wanted to focus on. The Questionnaire was
completed by Directors, and reviewed by the NCC and then the Board. The NCC assessed the performance of the Board as a whole,
taking into account the Boards composition and size, the Boards access to information, Board processes, Board accountability,
standard of conduct and performance of the Boards principal functions and fiduciary duties, and guidance to and communication
with the Management.
The Chairman, together with the Chairman of the NCC, also assessed the performance of individual Directors based on factors such
as the Directors attendance, preparedness, candour, participation and contribution at Board meetings and industry and business
knowledge.
Informal reviews of the Boards collective performance are conducted periodically and on a regular basis by the NCC with inputs
from the other Directors and the Executive Chairman. At this stage, the Board considers it more appropriate to focus on the Board
performance collectively in its appraisal process.
32

PRINCIPLE 6: ACCESS TO INFORMATION
In order to fulfil their responsibilities, Directors should be provided with complete, adequate and timely information prior to Board
Meetings and on an on-going basis so as to enable them to make informed decisions to discharge their duties and responsibilities.
All Directors receive information from Management about the Group on a regular basis so that they are equipped to play their roles
during the Board Meetings. Board papers are prepared for each meeting of the Board. The Board papers include sufficient information
from Management on financial, business and corporate issues. This is to enable the Directors to be properly briefed on issues to be
considered at the Board Meetings.
All Directors have unrestricted access to the Companys records and information and receive financial and related reports from
Management. Directors also liaise with Management as required and may consult with other employees in order to seek additional
information when needed.
In addition, Directors have separate and independent access to Senior Management and the Company Secretary at all times. The
Company Secretary is responsible to the Board for ensuring the established procedures and relevant statutes and regulations are
complied with. The Company Secretary shall attend all the Board Meetings held.
Each and every Director has the right to seek independent legal and other professional advice, at the Companys expense, concerning
any aspect of the operations or undertakings of the Group in order to fulfil their duties and responsibilities as Directors.
PRINCIPLES 7 AND 8: REMUNERATION MATTERS

There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration
packages for individual Directors. No Director should be involved in deciding his own remuneration.
The level and structure of remuneration should be aligned with the long-term interest and risk policies of the Company, and should
be appropriate to attract, retain and motivate (a) the Directors to provide good stewardship of the Company, and (b) key management
personnel to successfully manage the Company. However, companies should avoid paying more than is necessary for this purpose.
The Groups remuneration policy is to provide compensation packages at market rates to reward successful performance and attract,
retain and motivate Managers and Directors.
The NCC seeks expert advice and views on remuneration and governance matters from both within and outside the Group as appropriate
and determines the remuneration packages for the Executive Chairman and Senior Management based on the performance of the
Group as well as the individual. By drawing on a pool of independent consultants for diversified views and specific expertise, the
NCC ensures that existing relationships, if any, between the Group and its appointed remuneration consultants will not affect the
independence and objectivity of the remuneration consultants. The Executive Chairman does not participate in the discussion of
his compensation package. Through the use of contractual provisions, the Group has the ability to reclaim incentive components of
remuneration from the management personnel in exceptional circumstances of misstatement of financial results, or of misconduct
resulting in financial loss to the Company.
For the financial year 2013, the Hay Group was engaged to advise the Group on remuneration matters. The NCC was satisfied that
other services rendered to the Group by the said remuneration consultant has not prejudiced their independence and objectivity.
33

PRINCIPLE 9: DISCLOSURE ON REMUNERATION
Every Company should provide clear disclosure of its remuneration policies, level and mix of remuneration, and the procedure
for setting remuneration in the Companys Annual Report. It should provide disclosure in relation to its remuneration policies to
enable investors to understand the link between remuneration paid to Directors and key management personnel, and performance.
Details of Directors remuneration are set out below:
Number of Directors
Remuneration Band
2013
1
7
8
$500,000 and above

$250,000 to below $500,000
Below $250,000
2012 (2)
1
7
8
(1)
Notes:
(1) Includes Directors remuneration payable to Mr Lim Tse Ghow Olivier who ceased to be an Independent Director on 29 June 2013.
(2) Includes Directors remuneration payable to Mr Tham Kui Seng who had retired on 27 April 2012.
Summary of the compensation table for the year ended 31 December 2013 (Group):
Name of Director
Salary (1)
%
Bonus (2)
%
Directors Fees
%
Share Options
Grants
%
Total
Compensation
%
94
100
64
36
100
68
32
100
59
41
100
54
46
100
57
43
100
97
100
100
100
$500,000 and above

Dr Loo Choon Yong
Executive Chairman
Below $250,000
Mr Koh Poh Tiong
Non-Executive
Mr Kee Teck Koon
Non-Executive
Dr Wee Beng Geok
Non-Executive
Mr Tan Soo Nan
Non-Executive
Professor Lim Pin
Non-Executive
Mr Lim Tse Ghow Olivier (3)
Non-Executive
Non-Executive
Notes:
(1)
(2)
(3)
(4)
The salary amount shown is inclusive of allowances and statutory contributions to the Central Provident Fund.
The bonus amount shown is inclusive of statutory contributions to the Central Provident Fund.
Mr Lim Tse Ghow Olivier ceased to be an Independent Director on 29 June 2013.
Mr Raymond Lim Siang Keat was appointed Independent Director on 25 April 2013.
KEY EXECUTIVES REMUNERATION

The Code requires the remuneration of at least the top five key executives who are not in the capacity of a Director to be disclosed
within bands of $250,000. However, due to commercial sensitivities, the Company believes that disclosure of the remuneration of
individual executives is disadvantageous to the business interests and the long-term performance of the Group, especially in a highly
competitive industry.
There are no employees in the Group who are the immediate family members of a Director or the Chief Executive Officer. Key
information regarding the Employees Share Option Scheme is set out on pages 43 to 47 of the Annual Report.
34

PRINCIPLE 10: ACCOUNTABILITY
The Board should present a balanced and understandable assessment of the Companys performance, position and prospects.
The Group prepares its financial statements in accordance with the Singapore Financial Reporting Standards.
In presenting its quarterly and full year financial results to shareholders, the Board aims to provide to the shareholders a balanced and
comprehensive assessment of the Groups performance, position and prospects. Management provides the Board with appropriate
details and management accounts of the Groups performance, position and prospects on a quarterly basis.
As has been introduced earlier, the NCC and the AC have been delegated specific functions to assist the Board in the execution of
its duties.
NOMINATION & COMPENSATION COMMITTEE
The NCC is chaired by Dr Wee Beng Geok with the Executive Chairman, Dr Loo Choon Yong, Professor Lim Pin and Mr Koh Poh
Tiong (appointed on 2 January 2014) as members. The majority of the NCC members are Independent Directors.
The responsibilities of the NCC include the following:
(a)

(b)
(c)
(d)
(e)
(f)
Make recommendations to the Board for approval on matters relating to:

(i) review the Boards succession plans for Directors, including the Chairman and the Chief Executive Officer;
(ii) develop a process for evaluation of the performance of the Board, its Board committees and Directors;
(iii) review of training and professional development programs for the Board;
(iv) recommend the appointment and re-appointment of Board Members; and
(v) determine the framework or broad policy for the remuneration of the Board Members;
Determine the framework or broad policy for the remuneration of key executives as it is designated to consider. No Director or
Manager shall be involved in any decisions as to their own remuneration;
Review the design of all Employee Share Option Schemes approved by the Board and the shareholders. For any such schemes,
it shall determine each year whether awards will be made, and if so, the overall amount of such awards, the individual awards
to eligible persons and the performance targets to be used;
Empowered to delegate to Chairman or Company Secretary to approve and release such announcements in relation to the
administration of the Employee Share Option Schemes that are required for the compliance with the Singapore Exchange
Securities Trading Limited (SGX-ST) Listing Manual;
Sub-delegate, if required, any of its powers within its Terms of Reference, from time to time, as the Committee may deem fit;
and
Consider such other matters as may be requested by the Board.
It is the view of the Board that it is in the best interest of the Company to have the Executive Chairman, Dr Loo Choon Yong, sit on the
NCC. The Board believes that Dr Loo Choon Yongs long experience in the healthcare industry and inputs are necessary to enable
the Company to compensate satisfactorily the key executives and clinicians in the competitive healthcare industry. Furthermore, the
Committee, comprising three other Independent Directors reviews the compensation of the Executive Chairman to ensure that he is
appropriately rewarded, giving due regard to the financial and commercial health and business needs of the Group.
AUDIT COMMITTEE
The composition of the AC and its delegated duties are set out in the section under Principle 12 of this Statement.
PRINCIPLE 11: RISK MANAGEMENT AND INTERNAL CONTROLS

The Board is responsible for the governance of risk. The Board should ensure that Management maintains a sound system of risk
management and internal controls to safeguard shareholders interests and the Companys assets, and should determine the nature
and extent of the significant risks which the Board is willing to take in achieving its strategic objectives.
The Directors recognise that they have the overall responsibility to ensure accurate financial reporting and adequate system of internal
controls for the Group, including financial, operational, compliance, information technology controls and risk management policies
and systems.
35

PRINCIPLE 11: RISK MANAGEMENT AND INTERNAL CONTROLS (CONTD)
The Group has adopted an entity-wide risk assessment framework to enhance its risk management capabilities. Key risks, control
measures and management actions are identified by Management and reviewed annually by the AC. The Board through the AC
and Management continues to improve and enhance the risk assessment framework. Based on the work performed by the internal
auditors, the statutory audit by the external auditors and reviews performed by Management, the Board, with the concurrence of the
AC, is of the opinion that the Group has adequate and effective risk management systems and internal controls in place to mitigate
critical and significant risks in the following areas: Financial, Operational, Compliance and Information Technology Risks.
While no system can provide absolute assurance against material loss or financial misstatement, the Groups internal financial controls
are designed to provide reasonable assurance that assets are safeguarded, that proper accounting records are maintained, and that
financial information used within the business and for publication is reliable. In reviewing these controls, the Directors have had
regard to the risks to which the business is exposed, the likelihood of such risks occurring and the costs of protecting against them.
The Directors have also received assurance from the Executive Chairman and the CFO regarding the Companys financial records
and the effectiveness of the Companys risk management and internal controls.
PRINCIPLE 12: AUDIT COMMITTEE

The Board should establish an Audit Committee with written terms of reference which clearly set out its authority and duties.
The AC comprising its Chairman, Mr Kee Teck Koon and other members, namely, Messrs Koh Poh Tiong and Raymond Lim Siang
Keat, all Independent Directors and Mr Tan Soo Nan, meets periodically with the Groups internal and external auditors as well as
Management to review accounting, auditing and financial reporting matters. This is to ensure that an effective control environment is
maintained in the Group. The AC also monitors proposed changes in accounting policies and discusses the accounting implications
of major transactions. In addition, the Committee also advises the Board regarding the adequacy of the Groups internal controls and
the contents and presentation of its quarterly and annual financial statements.
Specifically, the AC:
(a) reviews the audit plans, functions and scope of audit examination of the external auditors and approves the audit plans of the
internal auditors;
(b) recommends to the Board the appointment and re-appointment of external auditors;
(c) approves the remuneration of the external auditors, and reviews the scope and result of the audit and its cost effectiveness;
(d) evaluates the overall effectiveness of both the internal and the external audits through regular meetings with each group of
auditors;
(e) reviews the adequacy and effectiveness of the internal audit function;
(f) determines that no restrictions are being placed by Management upon the work of the internal and external auditors;
(g) evaluates the adequacy of the internal control systems of the Group by reviewing written reports from the internal and external
auditors, and Managements responses and actions to correct any deficiencies;
(h) evaluates adherence to the Groups administrative, operating and internal accounting controls;
(i) monitors proposed changes in accounting policies and discusses the accounting implications of major transactions;
(j) reviews the quarterly and annual financial statements before submission to the Board for adoption;
(k) reviews Interested Person Transactions (as defined in Chapter 9 of the Listing Manual of the SGX-ST) to ensure that they are on
normal commercial terms and not prejudicial to the interests of the Company or its shareholders;
(l) reviews non-audit services provided by the external auditors to establish their independence;
(m) discusses with the external auditors any suspected fraud or irregularity or failure of internal controls or suspected infringement
of any Singapore or other applicable law, rule and regulation;
(n) is authorised to put in place measures to ensure that staff have the means to raise concerns about possible improprieties in
matters of financial reporting or other matters in confidence, and that there is an independent investigation and appropriate
follow-up action;
(o) reviews and approves the key risks, control measures and management actions identified by Management (i.e. Entity Risk
Assessment) on an annual basis; and
(p) considers other matters as requested by the Board.
The AC is authorised to investigate any matter within its terms of reference, and has full access to Management and also full discretion
to invite any Director or Executive to attend its meetings, as well as reasonable resources to enable it to discharge its functions properly.
The AC meets with the external auditors without the presence of Management, at least once a year.
36

PRINCIPLE 12: AUDIT COMMITTEE (CONTD)
The fees paid to our external auditor, KMPG LLP, is set out on page 89 of the Annual Report.
The Group has put in place a whistle-blowing policy. This policy provides well-defined and accessible channels through which
employees, in confidence and good faith, without fear of reprisal, may report concerns about possible improprieties in matters of financial
reporting or other matters within the Group. Details of the policy are posted on the Groups intranet for employees easy reference.
PRINCIPLE 13: INTERNAL AUDIT

The Company should establish an effective internal audit function that is adequately resourced and independent of the activities
it audits.
The Group has an internal audit function that is independent of the activities it audits. The internal auditors report to the Chairman
of the AC functionally and to the Executive Chairman administratively.
The department performing the internal audit function has adopted and complied with the Standards for the Professional Practice
of Internal Auditing by The Institute of Internal Auditors. It operates within the framework stated in its Internal Audit Charter which is
approved by the AC. It adopts a risk-based audit methodology to develop its audit plans which align its activities to key risks across
the Group. Based on risk assessments performed, greater focus and appropriate review intervals are set for higher risk activities and
material internal controls, including compliance with the Groups policies, procedures and regulatory responsibilities. The internal
audit plans are reviewed and approved by the AC.
The AC will ensure that the department performing the internal audit function has adequate resources and appropriate standing
within the Group to perform its function effectively. The Committee will assess the effectiveness of the internal audit function on an
annual basis by examining:
(a)
(b)
(c)
(d)
the scope of the internal auditors work;

the quality of the auditors reports;
the auditors relationship with external auditors; and
the auditors independence of the areas reviewed.
PRINCIPLE 14: SHAREHOLDER RIGHTS

Companies should treat all shareholders fairly and equitably, and should recognize, protect and facilitate the exercise of shareholders
rights, and continually review and update such governance arrangements.
The Groups robust corporate governance culture and awareness promote fair and equitable treatment of all shareholders. All
shareholders enjoy specific rights under the Singapore Companies Act and Articles of Association. All shareholders are treated fairly
and equitably. These rights include, amongst others, pecuniary rights, for example, the right to participate in profit distributions and
membership rights such as the right to participate in general meetings and the right to exercise their voting rights. Under the Articles
of Association, ordinary shareholders are entitled to attend and vote at the Annual General Meeting by person or proxy.
The Group respects the equal information rights of all shareholders and is committed to the practice of fair, transparent and timely
disclosure. All price-sensitive information is publicly released prior to any sessions with individual investors or analysts.
PRINCIPLE 15: COMMUNICATION WITH SHAREHOLDERS

Companies should actively engage their shareholders and put in place an investor relations policy to promote regular, effective
and fair communication with shareholders.
In line with continuous disclosure obligations of the Company, pursuant to the SGX-ST Listing Rules and the Singapore Companies
Act, the Boards policy is that the Companys shareholders are informed of all major developments that impact the Group.
37

PRINCIPLE 15: COMMUNICATION WITH SHAREHOLDERS (CONTD)
The Groups investor relations activities promote regular, effective and fair communication with investors. Briefing sessions for the
media and analysts are conducted when quarterly results are released. All press statements and quarterly financial statements are
published on the Groups and SGX websites. A dedicated investor relations team supports the Executive Chairman and the CFO
in maintaining a close and active dialogue with institutional investors. The Groups website provides contact details for investors to
submit their feedback and raise any questions.
During the year, Management met more than 160 local and foreign investors at more than 100 meetings. It participated in 5 local
and foreign investor conferences and non-deal road shows. These meetings provide a forum for Management to explain the Groups
strategy and financial performance. Management also uses meetings with investors and analysts to solicit their perceptions of the Group.
Information is communicated to shareholders on a timely basis. Where there is inadvertent disclosure made to a select group, the
Company will make the same disclosure publicly as soon as practicable. Communication is made through:
(a) annual reports that are prepared and issued to all shareholders. The Board makes every effort to ensure that the annual report
includes all relevant information about the Group, including future developments and other disclosures required by the Singapore
Companies Act, Singapore Financial Reporting Standards and the SGX-ST Listing Manual;
(b) financial statements containing a summary of the financial information and affairs of the Group for the period;
(c) notices of and explanatory memoranda for Annual General Meetings and Extraordinary General Meetings;
(d) press and analyst briefings for the Groups quarterly and annual results as well as other briefings, as appropriate;
(e) press releases on major developments of the Group;
(f) disclosures to the SGX-ST; and
(g) the Groups website at http://www.rafflesmedicalgroup.com at which shareholders can access information on the Group. The
website provides inter alia, corporate announcements, press releases, annual reports and profile of the Group.
PRINCIPLE 16: CONDUCT OF SHAREHOLDER MEETINGS

Companies should encourage greater shareholder participation at general meetings of shareholders, and allow shareholders the
opportunity to communicate their views on various matters affecting the Company.
Shareholders are encouraged to attend the Annual General Meeting to ensure a high level of accountability and to stay informed of
the Groups strategies and goals. The Annual General Meeting is the principal forum for dialogue with shareholders.
The notice of the Annual General Meeting is despatched to shareholders, together with explanatory notes or a circular on items of
special business, at least 14 days before the meeting. The Board welcomes questions from shareholders who have an opportunity
to raise issues at the Annual General Meeting. The Chairmen of the AC and the NCC are normally available at the meeting to answer
those questions relating to the work of these Committees. The external auditors are normally available to address shareholders queries
about the conduct of audit and the preparation and content of the auditors report.
Each item of special business included in the notice of the meeting is accompanied, where appropriate, by an explanation for the
proposed resolution. Separate resolutions are proposed for substantially separate issues at the meeting.
38
Additional Information Required By

The Singapore Exchange Securities Trading Limited
MATERIAL CONTRACTS
There are no material contracts entered into by the Company or any of its subsidiaries involving the interests of the Chief Executive
Officer, any Director or controlling shareholder.
DEALINGS IN SECURITIES
In line with the best practices on dealing in securities set out in the SGX-ST Listing Manual, the Group requires all Directors and
Management not to trade in the Companys securities during the period beginning two weeks and a month before the date of the
announcement of the quarterly and full year results respectively and ending on the date of the announcement of the relevant results.
The Directors and Management are not expected to deal in the Companys securities on considerations of a short term nature. They
are required to observe insider trading provisions under the Securities and Futures Act at all times even when dealing in the Companys
securities within the permitted periods. Directors of the Company are required to report all dealings to the Company Secretary.
STATEMENT OF RISK MANAGEMENT

The Group has adopted an entity-wide risk assessment framework to identify, evaluate and control all key risks on a coordinated and
integrated basis. Business Units are involved in identifying and evaluating risks from the bottom up and these risks are then reviewed
by the Group level to provide a top down perspective as well. Key risks, control measures and management actions identified by
Management are reviewed annually by the AC.
Under the framework, the risks are prioritised and Business Units use both preventive and mitigation controls to manage risk exposures
within prescribed tolerance limits. These risk management activities are carried out periodically as embedded organisational processes
within the Group.
Having reviewed the risk management practices and policies of the Group, the Board has not found anything to suggest that risks
are not being satisfactorily managed.
INTERESTED PERSONS TRANSACTIONS

The Company has established procedures to ensure that all transactions with Interested Persons are reported to the AC on a quarterly
basis. The AC has reviewed the Interested Persons Transactions (IPT) entered into during the financial year by the Company. The
Companys disclosures, according to Rule 907 of the SGX-ST Listing Manual in respect of IPT for the aggregate value of the IPT
entered for the financial year ended 31 December 2013, is set out below. As the Company does not have a shareholders mandate
under Rule 920, there is no IPT reporting associated therewith.
Name of
Interested Person
Loo & Partners, LLP

For the provision of legal advisory services
to the Group
Aggregate value of all interested person

Aggregate value of all interested
transactions during the financial year
person transactions conducted under
under review (excluding transactions
shareholders mandate pursuant to Rule
less than $100,000 and transactions
920 (excluding transactions less than
conducted under shareholders mandate
$100,000)
pursuant to Rule 920)
$106,000
Nil
The above IPT was conducted on normal commercial terms. The AC was also of the view that the IPT was not prejudicial to the
interests of the Company and its minority shareholders.
39
Financial
Report
CONTENTS
41 Directors Report
49 Statement by Directors
50 Independent Auditors Report
51 Statements of Financial Position
52 Consolidated Income Statement
53 Consolidated Statement of

Comprehensive Income
54 Consolidated Statement of

Changes in Equity
56 Consolidated Statement of Cash Flows
57 Notes to the Financial Statements
100 Shareholdings Statistics
102 Notice of Annual General Meeting

Proxy Form
40
Directors Report
Year ended 31 December 2013
We are pleased to submit this annual report to the members of the Company together with the audited financial statements for the
financial year ended 31 December 2013.
Directors
The directors in office at the date of this report are as follows:
Dr Loo Choon Yong
Mr Koh Poh Tiong
Mr Kee Teck Koon
Dr Wee Beng Geok
Mr Tan Soo Nan
Professor Lim Pin
Mr Raymond Lim Siang Keat (Appointed on 25 April 2013)
Directors interests
According to the register kept by the Company for the purposes of Section 164 of the Singapore Companies Act, Chapter 50 (the
Act), particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and
infant children) in shares, debentures, warrants and share options in the Company and in a related corporation are as follows:

The Company

Holdings in the name

of the director, spouse
or infant children
At beginning
At end
of the year
of the year
Other holdings in which

the director is deemed
to have an interest
At beginning
At end
of the year
of the year
Ordinary Shares
Dr Loo Choon Yong

55,764,339
56,412,761
230,328,657
Mr Koh Poh Tiong
30,000
30,000

Dr Wee Beng Geok
903,000
951,000

Mr Tan Soo Nan
1,143,000
1,277,686

Professor Lim Pin
499,327
595,482

Option

At beginning
At end
price
The Company
of the year
of the year
per share

233,006,897
Date
of grant
Options to subscribe for ordinary shares
Mr Koh Poh Tiong

20,000
20,000
$2.34
02/04/2012
60,000 $3.28 01/04/2013
Mr Kee Teck Koon

20,000
20,000
$2.34
02/04/2012
60,000 $3.28 01/04/2013
Dr Wee Beng Geok

48,000

$1.24
01/04/2008
120,000 120,000 $0.78 01/04/2009
70,000 70,000 $1.66 01/04/2010
70,000 70,000 $2.20 01/04/2011
80,000 80,000 $2.34 02/04/2012
80,000 $3.28 01/04/2013
41
Directors Report (contd)

Directors interests (CONTD)

Option

At beginning
At end
price
The Company
of the year
of the year
per share
Date
of grant

Options to subscribe for ordinary shares

Mr Tan Soo Nan
120,000

$0.78
01/04/2009

70,000 70,000 $1.66 01/04/2010

70,000 70,000 $2.20 01/04/2011

80,000 80,000 $2.34 02/04/2012

80,000 $3.28 01/04/2013
Professor Lim Pin
60,000

$2.20
01/04/2011

70,000 40,000 $2.34 02/04/2012

60,000 $3.28 01/04/2013

Holdings in the name
Other holdings in which

of the director, spouse
the director is deemed

or infant children
to have an interest

At beginning
At end
At beginning
At end
Immediate Holding Company
of the year
of the year
of the year
of the year

Ordinary Shares
Raffles Medical Holdings Pte Ltd

Dr Loo Choon Yong
100,000
100,000

The options in the Company granted in 2009 to 2013 are exercisable during a period commencing 12 months from the Date of
Grant for the first 30,000 shares, 24 months from the Date of Grant for the next 30,000 shares and the balance after 36 months and
expires at the end of 60 months from the Date of Grant.
By virtue of Section 7 of the Act, Dr Loo Choon Yong is deemed to have an interest in all of the wholly-owned subsidiaries of Raffles
Medical Group Ltd, at the beginning and at the end of the financial year.
Except as disclosed in this report, no director who held office at the end of the financial year had interests in shares, debentures,
warrants or share options of the Company, or of related corporations, either at the beginning of the financial year, or date of appointment
if later, or at the end of the financial year.
There were no changes in any of the above mentioned interests in the Company between the end of the financial year and 21 January
2014.
Except as disclosed under the Share Options section of this report, neither at the end of, nor at any time during the financial year,
was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company
to acquire benefits by means of the acquisition of shares, debentures, warrants or share options of the Company or any other body
corporate.
Except for salaries, bonuses and fees and those benefits that are disclosed in this report and in notes 24 and 25 to the financial
statements, since the end of the last financial year, no director has received or become entitled to receive, a benefit by reason of a
contract made by the Company or a related corporation with the director, or with a firm of which he is a member, or with a company
in which he has a substantial financial interest.
42

Share options
Employees Share Option Scheme
Raffles Medical Group (2000) Share Option Scheme
(1) On 31 October 2000, the shareholders of the Company approved the Raffles Medical Group (2000) Share Option Scheme (RMG
2000 Scheme) at the Extraordinary General Meeting. Details of the RMG 2000 Scheme were set out in the Directors Report for
the financial year ended 31 December 2000.
(2) The RMG 2000 Scheme is administered by the Nomination & Compensation Committee (Committee) comprising the following
directors:

Dr Wee Beng Geok

Professor Lim Pin
Dr Loo Choon Yong
Dr Loo Choon Yong is not a participant in the scheme.
(3) No additional options were granted pursuant to the RMG 2000 Scheme for the financial year ended 31 December 2013.
(4) As at 31 December 2013, outstanding options to take up unissued ordinary shares in the Company under the RMG 2000
Scheme were as follows:

Date of
Exercise
grant
price
of options
per share
Options
outstanding
at
Options
1 January
Options
forfeited/
2013
exercised
expired
Options
outstanding
at
31 December
2013
31/03/2003 $0.185
139,000
139,000

01/04/2004 $0.330
226,000
84,000

01/04/2005 $0.420
375,000
168,000

03/04/2006 $0.710
1,067,000
475,000
6,000

02/04/2007 $1.150
1,217,000
131,000 74,000

01/04/2008 $1.240
1,221,000
269,000 49,000

01/04/2009 $0.780
2,608,000
501,000 188,000

01/04/2010 $1.660
3,448,000
802,000 18,000

7,397,000
10,301,000
2,569,000 335,000
Number
of option
holders at
31 December
2013
142,000
207,000
586,000
22
1,012,000
54
903,000
76
1,919,000
66
2,628,000
136
(5) Since the commencement of the Scheme, no options have been granted to controlling shareholders of the Company and their
associated companies and parent group employees. No participant has received 5% or more of the total number of options
available under the Scheme. There is no discount granted to the subscription price of the option compared to the last dealt
price for three consecutive market days preceding to the date of the option.
43

Share options (CONTD)

Employees Share Option Scheme (contd)
Raffles Medical Group (2000) Share Option Scheme (contd)
(6) The following are details of options granted to Directors:

Name of participant

Directors of the Company
Dr Wee Beng Geok

Mr Tan Soo Nan
Professor Lim Pin
Total
Aggregate options
granted since
commencement of
Scheme to
31 December 2013
Aggregate options
exercised since
commencement of
Scheme to
31 December 2013
Aggregate options
outstanding
as at
31 December 2013
1,138,000
1,238,000
968,000
948,000
1,168,000
968,000
190,000
70,000
3,344,000
3,084,000
260,000
(7) Statutory information regarding the above options is as follows:

(a) Options are exercisable in whole or in part:
(i)
(ii) in relation to shares for which the subscription price is determined at a discount to market value, a period commencing
on such date in respect of such proportion of the option amount as the Committee may prescribe (but which shall
in any event be no earlier than the date immediately after the second anniversary of the Date of Grant) and ending
on the date immediately before the tenth anniversary of such Date of Grant for an employee and ending on the date
immediately before the fifth anniversary of such Date of Grant for a non-employee.
in relation to shares for which the subscription price is determined on market value, a period commencing on such
date in respect of such proportion of the option amount as the Committee may prescribe (but which shall in any
event be no earlier than the date immediately after the first anniversary of the Date of Grant) and ending on the date
immediately before the tenth anniversary of such Date of Grant for an employee and ending on the date immediately
before the fifth anniversary of such Date of Grant for a non-employee; and
(b) The number of shares which may be acquired by a participant and the exercise price are subject to adjustment, by reason
of any issue of additional shares in the Company by way of rights or capitalisation of profits or reserves made which an
option remains unexercised.
Raffles Medical Group (2010) Share Option Scheme

(1) At the Annual General Meeting held on 30 April 2010, the shareholders of the Company adopted the Raffles Medical Group
(2010) Share Option Scheme (RMG 2010 Scheme) for the Company. The existing RMG 2000 Scheme was concurrently
terminated. The termination of the RMG 2000 Scheme will, however, not affect the subscription rights comprised in options
granted pursuant to the RMG 2000 Scheme prior to the termination. Such options will continue to be exercisable in accordance
with the rules of the RMG 2000 Scheme. However, no further options will be granted under the RMG 2000 Scheme.
(2) Under the terms of the RMG 2010 Scheme, the committee (Committee) of directors administrating the Scheme may make offers
of the grant of options to eligible persons to subscribe for shares at a subscription price set at the market price or at a discount
of the market price on the capital of the Company, subject inter alia to the following:

44
(a) the aggregate number of shares over which options may be granted when added to the number of shares issued and issuable
in respect of all options granted under the RMG 2010 Scheme and in respect of all other share-based incentive schemes
of the Company (if any), shall not exceed 15% of the total issued shares (excluding treasury shares) of the Company on
the date preceding the offer date of an option.



(b) the number of shares to be offered to any Group employee in accordance with the RMG 2010 Scheme shall be determined
at the absolute discretion of the Committee, who shall take into account (where applicable) criteria such as rank,
responsibilities, past performance, length of service, contributions to the Group and potential for future development of
that Group employee, provided that in relation to Controlling Shareholder(s) or their Associates:
(i)
the aggregate number of shares which may be offered by way of grant of options to Group employees who are Controlling
Shareholder(s) and/or their Associates shall not exceed 25% of the total number of shares available under the RMG
2010 Scheme; and
(ii) the aggregate number of shares which may be offered by way of grant of options to each Group employee who is a
Controlling Shareholder or his Associate shall not exceed 10% of the total number of shares available under the RMG
2010 Scheme.
(3) Subject to any adjustment pursuant to any variation of the share capital of the Company, the subscription price for each share
under the RMG 2010 Scheme shall be:

(a) a price equal to the average of the last dealt prices for a share, as determined by reference to the daily official list or
other publication published by the Singapore Exchange Securities Trading Limited for the three consecutive market days
immediately preceding the offer date of that option, rounded up to the nearest whole cent, provided that in the case
of a Market Price Option that is proposed to be granted to a Controlling Shareholder or an Associate of a Controlling
Shareholder, the Subscription Price for each share shall be equal to the average of the last dealt price(s) for a share, as
determined by reference to the daily official list published by the Singapore Exchange Securities Trading Limited, for the
three consecutive market days immediately preceding the latest practicable date prior to the date of any circular, letter or
notice to the Shareholders proposing to seek their approval of the grant of such options to such Controlling Shareholder
and/or Associate of a Controlling Shareholder; or
(b) the discounted value of the share price determined under (a) above, provided that the maximum discount shall not exceed
20% of (a) above, and
(c) the prior approval of the shareholders of the Company in general meeting shall have been obtained for the making of offers
and grants of options at a discount not exceeding the maximum discount in a separate resolution (for the avoidance of
doubt, such prior approval shall be required to be obtained only once and, once obtained, shall, unless revoked, authorise
the making of offers and grants of options under the RMG 2010 Scheme at such discount for the duration of the RMG
2010 Scheme), or
(d) the prior approval of the shareholders of the Company in general meeting shall have been obtained for the discount
exceeding 20% of the market price if it is prescribed or permitted for the time being by the Singapore Exchange Securities
Trading Limited.
(4) Under the RMG 2010 Scheme, an option may be exercised in whole or in part only in respect of 1,000 shares or any multiple
thereof:

(a) in relation to shares for which the subscription price is determined on market value, during the period commencing after
the first anniversary of the offer date and expiring on the tenth anniversary of such offer date; and
(b) in relation to shares for which the subscription price is determined at a discount to the market value, during the period
commencing after the second anniversary of the offer date and expiring on the tenth anniversary of such offer date.
Save that the option period for an option granted to a participant, who is a non-executive director (including independent director)
of any member of the Group or a permanent part-time visiting consultant specialist contracted or engaged for service on a
regular basis by the Group but whose hours of work is not full-time, shall expire on the fifth anniversary of the Date of Grant.
45


(5) The RMG 2010 Scheme shall continue to be in force at the discretion of the Committee, subject to a maximum period of ten
years from 30 April 2010 provided always that the RMG 2010 Scheme may continue beyond the above stipulated period with
the approval of the shareholders by ordinary resolution in general meeting and any of the relevant authorities which may then
be required.
(6) The RMG 2010 Scheme is administered by a committee comprising Directors of the Company duly authorised and appointed
by the Board to administer the RMG 2010 Scheme.
(7) The Committee, at the date of this report, administering the RMG 2010 Scheme comprises the following directors:

Dr Wee Beng Geok

Mr Koh Poh Tiong (Appointed on 2 January 2014)
Professor Lim Pin
Dr Loo Choon Yong
(8) On 1 April 2013, additional options were granted pursuant to the RMG 2010 Scheme to subscribe for ordinary shares at an
exercise price of $3.28 as follows:
Company

Directors of the Company and Executive Directors of the subsidiaries

Other participants
970,000
5,230,000
6,200,000
(9) Since the commencement of the Scheme, no options have been granted to controlling shareholders of the Company and their
associated companies and parent group employees. No participant has received 5% or more of the total number of options
available under the Scheme. There is no discount granted to the subscription price of the option compared to the last dealt
price for three consecutive market days preceding to the date of the option.
(10) As at 31 December 2013, outstanding options to take up unissued ordinary shares in the Company under the RMG 2010
Scheme were as follows:

Options
Options
Number

outstanding
outstanding
of option
Date of
Exercise
at
Options
at
holders at
grant
price
1 January
Options
Options
forfeited/
31 December
31 December
of options
per share
2013
granted
exercised
expired
2013
2013

01/04/2011

02/04/2012
01/04/2013
$2.20
$2.34
$3.28
46
4,042,000

851,000
58,000
5,623,000

679,000
248,000
6,200,000
226,000
3,133,000
4,696,000
5,974,000
9,665,000 6,200,000 1,530,000 532,000 13,803,000
202
302
430


(11) The following are details of options granted to Directors:

Options granted

for financial

year ended

Name of participant
31 December 2013
Aggregate
options
granted since
commencement
of Scheme to
31 December 2013
Aggregate
options
exercised since
commencement
of Scheme to
31 December 2013
Directors of the Company
Mr Koh Poh Tiong

Mr Kee Teck Koon
Dr Wee Beng Geok
Mr Tan Soo Nan
Professor Lim Pin
Total
60,000
60,000
80,000
80,000
60,000
340,000
Aggregate
options
outstanding
as at
31 December 2013
80,000
80,000
230,000
230,000
190,000

90,000
80,000
80,000
230,000
230,000
100,000
810,000
90,000
720,000
Save as disclosed above, there were no unissued shares of the Company or its subsidiaries under options granted by the Company
or its subsidiaries as at the end of the financial year.
The options granted by the Company do not entitle the holders of the options, by virtue of such holding, to any rights to participate
in any share issue of any other company.
Audit committee
The members of the Audit Committee during the year and at the date of this report are as follows:

Mr Kee Teck Koon (Chairman), Non-Executive Director (Appointed on 24 April 2013)

Mr Koh Poh Tiong, Non-Executive Director (Appointed on 24 April 2013)
Mr Tan Soo Nan, Non-Executive Director
Mr Raymond Lim Siang Keat, Non-Executive Director (Appointed on 2 January 2014)
The Audit Committee performs the functions specified in Section 201B of the Act, the SGX Listing Manual and the Code of Corporate
Governance.
The Audit Committee has held four meetings since the last directors report. In performing its functions, the Audit Committee met with
the Companys external and internal auditors to discuss the scope of their work and the results of their examination and evaluation
of the Companys internal accounting control system.
The Audit Committee also reviewed the following:

assistance provided by the Companys officers to the external and internal auditors;
quarterly financial information and annual financial statements of the Group and the Company prior to their submission to the
directors of the Company for adoption; and
interested person transactions (as defined in Chapter 9 of the SGX Listing Manual).
47

Audit committee (contd)

The Audit Committee has full access to management and is given the resources required for it to discharge its functions. It has full
authority and the discretion to invite any director or executive officer to attend its meetings. The Audit Committee also recommends
the appointment of the external auditors and reviews the level of audit and non-audit fees.
The Audit Committee has confirmed that it has undertaken a review of all non-audit services provided by the auditors and they would
not, in the Audit Committees opinion, affect the independence of the auditors. It has recommended to the Board of Directors that
the auditors, KPMG LLP, be nominated for re-appointment as auditors at the forthcoming Annual General Meeting of the Company.
In appointing our auditors for the Company and subsidiaries, we have complied with Rules 712 and 715 of the SGX Listing Manual.
Auditors
The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
Dr Loo Choon Yong

Chairman
Mr Kee Teck Koon

Director
22 February 2014
48
Statement By Directors
In our opinion:
(a) the financial statements set out on pages 51 to 99 are drawn up so as to give a true and fair view of the state of affairs of the
Group and of the Company as at 31 December 2013 and the results, changes in equity and cash flows of the Group for the year
ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50 and Singapore Financial
Reporting Standards; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they fall due.
The Board of Directors has, on the date of this statement, authorised these financial statements for issue.
On behalf of the Board of Directors
Dr Loo Choon Yong

Chairman
Mr Kee Teck Koon

Director
22 February 2014
49
Independent Auditors Report

Members of the Company
Raffles Medical Group Ltd
Report on the financial statements

We have audited the accompanying financial statements of Raffles Medical Group Ltd (the Company) and its subsidiaries (the
Group), which comprise the statements of financial position of the Group and the Company as at 31 December 2013, the income
statement, statement of comprehensive income, statement of changes in equity and statement of cash flows of the Group for the
year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 51 to 99.
Managements responsibility for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions
of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards, and for devising and maintaining
a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from
unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the
preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability of assets.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the entitys preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and the statement of financial position of the Company are properly
drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards to give a true and fair view of
the state of affairs of the Group and of the Company as at 31 December 2013 and the results, changes in equity and cash flows of
the Group for the year ended on that date.
Report on other legal and regulatory requirements

In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated
in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.
KPMG LLP
Public Accountants and
Singapore
22 February 2014
50
Statements Of Financial Position

As at 31 December 2013

Group Company

Note 2013 2012 2013 2012
$000 $000 $000 $000
Non-current assets
Property, plant and equipment
4
153,656
153,888
4,422
4,155
Intangible assets
5
164
164
93
93
Investment properties
6
100,400
194,500

Subsidiaries
26

241,584 263,070
254,220 348,552 246,099 267,318
Current assets
Inventories 9,080 5,442 2,062 1,270
Trade and other receivables
7
44,228
38,169
16,660
66,236
Cash and cash equivalents
8
265,907
102,482
220,046
77,223
319,215 146,093 238,768 144,729
Total assets 573,435 494,645 484,867 412,047

Equity attributable to owners of the Company
Share capital
9
228,160
207,188
228,160
207,188
Reserves
9 244,344 181,234 152,217 105,395
472,504 388,422 380,377 312,583
Non-controlling interests 1,289 994

Total equity 473,793 389,416 380,377 312,583

Non-current liabilities
Deferred tax liabilities
11
2,127
1,670
435
302
2,127 1,670 435 302

Current liabilities
Trade and other payables
12
72,664
66,318
98,830
94,372
Insurance contract provisions
13
9,700
6,162

Interest-bearing liabilities
14
4,755
19,747
4,755
3,747
Current tax liabilities
10,396
11,332
470
1,043

97,515 103,559 104,055 99,162
Total liabilities
99,642 105,229 104,490 99,464
Total equity and liabilities 573,435 494,645 484,867 412,047
The accompanying notes form an integral part of these financial statements.

51
Consolidated Income Statement


Note 2013 2012

$000 $000
Revenue
Other operating income
Inventories and consumables used
Purchased and contracted services
Staff costs
Depreciation of property, plant and equipment
Operating lease expenses
Other operating expenses
340,989 311,633
24,331
4,026
(38,237)
(38,736)
(24,625)
(22,386)
(170,091)
(152,275)
(8,268)
(7,903)
(7,271)
(7,165)
(22,501)
(20,839)
Profit from operating activities

Finance income
Finance expenses
94,327 66,355
960
465
(49)
(235)
Profit before tax

Tax expense
17
95,238 66,585
(9,943)
(9,376)
Profit for the year

16 85,295 57,209

Attributable to:
Owners of the Company
84,892
56,849
Non-controlling interests
403
360
Profit for the year 85,295 57,209

Earnings per share (cents)

Basic
19 15.43 10.53
Diluted

52
19 15.24 10.42
Consolidated Statement Of Comprehensive Income

2013 2012
$000 $000
Profit for the year 85,295 57,209

Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation differences - foreign operations
(30)
32
Total comprehensive income for the year 85,265 57,241

Total comprehensive income attributable to:
Owners of the Company
84,862
56,881
Non-controlling interests
403
360
Total comprehensive income for the year 85,265 57,241


53
54
190,344 (117) 10,339 133,441 334,007
702 334,709
32
56,849 56,881
360 57,241
2,236 (21,546) (2,466)
207,188 (85) 12,575 168,744 388,422
16,844
At 31 December 2012
Total contributions by and distributions to owners
994 389,416
(68) (2,534)
Transactions with owners, recorded directly in equity

Contributions by and distributions to owners
Issue of shares upon the exercise of options under Raffles
Medical Group Employees Share Option Scheme
4,409

4,409

4,409
Issue of shares in lieu of cash dividends of 3.0 cents per
ordinary share pursuant to Raffles Medical Group Ltd
Scrip Dividend Scheme
12,435

12,435

12,435
Value of employee services received for issue of share options

2,236

2,236

2,236
Final dividend paid of 3.0 cents per ordinary share - Cash

(3,673)
(3,673)

(3,673)
Final dividend paid of 3.0 cents per ordinary share - Scrip

(12,435)
(12,435)

(12,435)
Interim dividend paid of 1.0 cent per ordinary share - Cash

(5,438)
(5,438)

(5,438)
Dividends distributed to non-controlling shareholder of a
subsidiary

(68)
(68)
Total comprehensive income for the year


32

32

32
Comprehensive income for the year

Profit for the year

56,849
56,849
360
57,209
At 1 January 2012

Total
Currency Share
attributable Non
Share
translation
option
Accumulated
to owners of
controlling
Total

capital
reserve
reserve
profits
the Company
interests
equity
Group
$000 $000 $000 $000 $000 $000 $000
Consolidated Statement Of Changes In Equity
55
(30)
84,892
84,862
403 85,265
2,946 (24,698)
228,160 (115) 15,521 228,938
20,972
At 31 December 2013
Total contributions by and distributions to owners
472,504
1,289 473,793
(780) (108) (888)
Transactions with owners, recorded directly in equity

Contributions by and distributions to owners
Issue of shares upon the exercise of options under
Raffles Medical Group Employees Share Option Scheme
6,128

6,128

6,128
Issue of shares in lieu of cash dividends of 3.5 cents per
ordinary share pursuant to Raffles Medical Group Ltd
Scrip Dividend Scheme
14,844

14,844

14,844
Value of employee services received for issue of share options

2,946

2,946

2,946
Final dividend paid of 3.5 cents per ordinary share - Cash

(4,319)
(4,319)

(4,319)
Final dividend paid of 3.5 cents per ordinary share - Scrip

(14,844)
(14,844)

(14,844)
Interim dividend paid of 1.0 cent per ordinary share - Cash

(5,535)
(5,535)

(5,535)
Dividends distributed to non-controlling shareholder of a
subsidiary

(108)
(108)
Total comprehensive income for the year
Comprehensive income for the year

Profit for the year

84,892
84,892
403
85,295


(30)

(30)

(30)
Total
Currency Share
attributable Non
Share
translation
option
Accumulated
to owners of
controlling
Total

capital
reserve
reserve
profits
the Company
interests
equity
Group
$000 $000 $000 $000
$000 $000 $000

At 1 January 2013
207,188 (85) 12,575 168,744 388,422
994 389,416
Consolidated Statement Of Changes In Equity (contd)
Consolidated Statement Of Cash Flows


Note 2013 2012

$000 $000
Cash flows from operating activities
Profit before tax
95,238
66,585
Adjustments for:
Change in fair value of investment properties
(3,900)
(3,938)
8,268
7,903
Equity-settled share-based payment transactions
2,946
2,236
Finance expenses
49
235
Finance income
(960)
(465)
Gain on disposal of a subsidiary
(20,388)
Gain on disposal of property, plant and equipment

(43)
(88)
Loss on disposal of property, plant and equipment
2
Impairment of intangible assets

152
Property, plant and equipment written off
102
102
81,314 72,722
Changes in working capital:
Inventories (3,638) (306)
(6,093)
(6,228)
6,512
11,434
Insurance contract provisions
3,538
1,143
Cash generated from operations
Taxes paid
Interest paid
Net cash from operating activities
81,633
(10,422)
(20)
78,765
(9,043)
(177)
71,191 69,545

Cash flows from investing activities
Interest received
892
379
Proceeds from sale of property, plant and equipment
138
97
Proceeds from sale of a subsidiary
18
119,232
Purchase of property, plant and equipment

(8,186)
(9,737)
Payment for development related cost of investment property
(922)
(1,200)
Net cash from/(used in) investing activities
111,154 (10,461)

Cash flows from financing activities
Dividends paid to owners of the Company
(9,854)
(9,111)
Dividends paid to non-controlling shareholder of the subsidiary
(108)
(68)
Proceeds from issue of shares under share option scheme
6,128
4,409
Proceeds from bank loan
49,873
19,188
Repayment of bank loans
(65,024)
(20,668)
Net cash used in financing activities
(18,985) (6,250)

Net increase in cash and cash equivalents 163,360 52,834
Cash and cash equivalents at 1 January
102,482
49,691
Effect of exchange rate changes on balances
held in foreign currency
65
(43)
Cash and cash equivalents at 31 December

56
265,907 102,482
Notes To The Financial Statements

These notes form an integral part of the financial statements.

The financial statements were authorised for issue by the Board of Directors on 22 February 2014.
1 Domicile and activities

Raffles Medical Group Ltd (the Company) is incorporated in the Republic of Singapore and has its registered office at 585 North
Bridge Road, Raffles Hospital #11-00, Singapore 188770.
The principal activities of the Company are those relating to the operation of medical clinics and other general medical services.
The Group and the Company are the sole proprietor of the following:

Family Doctors
RafflesCare

Raffles Airport Medical Centre

Raffles Corporate Wellness

Raffles Dental Surgery

Raffles Healthcare Consultancy

Raffles Health Screeners

Raffles Medical Management

Raffles Medihelp

Raffles Optica

Raffles Pharmacare

Raffles Pharmacy

Raffles Specialist Centre

The Group and the Company are the partner of the following:
Changi Medical Services LLP

Raffles Research Labs LLP
All transactions of these sole proprietorships and partnerships are reflected in the financial statements of the Company. The
principal activities of the subsidiaries are set out in note 26 to the financial statements.
The immediate and ultimate holding company during the financial year is Raffles Medical Holdings Pte Ltd, which is incorporated
in Singapore.
The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the Group).
2 Basis of preparation
2.1 Statement of compliance

The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (FRS).
2.2 Basis of measurement

The financial statements have been prepared on the historical cost basis except for investment properties which are measured
at fair value.
2.3 Functional and presentation currency

These financial statements are presented in Singapore dollars, which is the Companys functional currency. All financial information
presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.
57
Notes To The Financial Statements (contd)

2 Basis of preparation (contd)

2.4 Use of estimates and judgements

The preparation of financial statements in conformity with FRSs requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and in any future periods affected.
Information about assumptions and estimation uncertainties that have significant risk of resulting in a material adjustment within
the next financial year are included in the following notes:

Note 4

estimation of useful lives and recoverable amounts of property, plant and equipment

Note 6

fair value determination of investment properties

Note 11
utilisation of tax losses

Note 13
estimation of policy liabilities

2.5 Changes in accounting policies

(i)
Fair value measurement

FRS 113 establishes a single framework for measuring fair value and making disclosures about fair value measurements,
when such measurements are required or permitted by other FRSs. In particular, it unifies the definition of fair value as the
price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants
at the measurement date. It also replaces and expands the disclosure requirements about fair value measurements in
other FRSs, including FRS 107 Financial Instruments: Disclosures.
From 1 January 2013, in accordance with the transitional provisions of FRS 113, the Group has applied the new fair value
measurement guidance prospectively, and has not provided any comparative information for new disclosures. Notwithstanding
the above, the change had no significant impact on the measurements of the Groups assets and liabilities. The additional
disclosures necessary as a result of the adoption of this standard has been included in notes 15 and 21.
(ii) Presentation of items of other comprehensive income
From 1 January 2013, as a result of the amendments to FRS 1, the Group has modified the presentation of items of other
comprehensive income in its consolidated statement of comprehensive income, to present separately items that would
be reclassified to profit or loss in the future from those that would never be. Comparative information has also been represented accordingly.
The adoption of the amendment to FRS 1 has no impact on the recognised assets, liabilities and comprehensive income
of the Group.
3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and
have been applied consistently by Group entities.
3.1 Business of consolidation

Business combinations
Business combinations are accounted for using the acquisition method in accordance with FRS 103 Business Combination
as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into
consideration potential voting rights that are currently exercisable.
58

3 Significant accounting policies (contd)

3.1 Business of consolidation (contd)

Business combinations (contd)
The Group measures goodwill at the acquisition date as:
the fair value of the consideration transferred; plus
the recognised amount of any non-controlling interests in the acquiree; plus
if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree,
over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts
are generally recognised in profit or loss.
Any contingent consideration payable is recognised at fair value at the acquisition date and included in the consideration
transferred. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within
equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profit or loss.
When share-based payment awards (replacement awards) are exchanged for awards held by the acquirees employees (acquirees
awards) and relate to past services, then all or a portion of the amount of the acquirers replacement awards is included in
measuring the consideration transferred in the business combination. This determination is based on the market-based value of
the replacement awards compared with the market-based value of the acquirees awards and the extent to which the replacement
awards relate to past and/or future service.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the acquirees
net assets in the event of liquidation are measured either at fair value or at the non-controlling interests proportionate share
of the recognised amounts of the acquirees identifiable net assets, at the acquisition date. The measurement basis taken is
elected on a transaction-by-transaction basis. All other non-controlling interests are measured at acquisition-date fair value,
unless another measurement basis is required by FRSs.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities that the Group incurs in
connection with a business combination are expensed as incurred.
Changes in the Groups interest in a subsidiary that do not result in a loss of control are accounted for as transactions with
owners in their capacity as owners and therefore no adjustments are made to goodwill and no gain or loss is recognised in profit
or loss. Adjustments to non-controlling interests arising from transactions that do not involve the loss of control are based on a
proportionate amount of the net assets of the subsidiary.
Subsidiaries

Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that control ceases.
The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the
Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if
doing so causes the non-controlling interests to have a deficit balance.
59


3.1 Business of consolidation (contd)

Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and
the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in
profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date
that control is lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale financial asset
depending on the level of influence retained.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements.
Accounting for subsidiaries

Investments in subsidiaries are stated in the Companys statement of financial position at cost less accumulated impairment
losses.
3.2 Foreign currency

Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at
the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period
are retranslated to the functional currency at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on
retranslation are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated
to Singapore dollars at exchange rates at the end of the reporting period. The income and expenses of foreign operations are
translated to Singapore dollars at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign currency translation
reserve (currency translation reserve) in equity. When a foreign operation is disposed of such that control is lost, the cumulative
amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on
disposal.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely to occur
in the foreseeable future, foreign exchange gains and losses arising from such a monetary item that are considered to form part
of a net investment in a foreign operation are recognised in other comprehensive income, and are presented in the translation
reserve in equity.
60


3.3 Financial instruments

Non-derivative financial assets
The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets
(including assets designated at fair value through profit or loss) are recognised initially on the trade date, which is the date that
the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the
rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards
of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the
Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and
settle the liability simultaneously.
The Group classifies non-derivative financial assets into the following categories: loans and receivables.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such
assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans
and receivables are measured at amortised cost using the effective interest method, less any impairment losses.
Loans and receivables comprise cash and cash equivalents, and trade and other receivables.
Cash and cash equivalents comprise cash balances and bank deposits with maturities of three months or less from the acquisition
date that are subject to an insignificant risk of changes in their fair value, and are used by the Group in the management of its
short-term commitments.
Non-derivative financial liabilities
Financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade date,
which is the date that the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.
Financial liabilities for contingent consideration payable in a business combination are initially measured at fair value. Subsequent
changes in the fair value of the contingent consideration are recognised in profit or loss.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and
settle the liability simultaneously.
The Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are
recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial
liabilities are measured at amortised cost using the effective interest method.
Other financial liabilities comprise loans and borrowings, and trade and other payables.
61


3.3 Financial instruments (contd)

Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options
are recognised as a deduction from equity, net of any tax effects.
3.4 Property, plant and equipment

Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes:
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items
(major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds
from disposal and the carrying amount of the item) is recognised in profit or loss.
Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item
if it is probable that the future economic benefits embodied within the component will flow to the Group, and its cost can be
measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property,
plant and equipment are recognised in profit or loss as incurred.
the cost of materials and direct labour;

any other costs directly attributable to bringing the assets to a working condition for their intended use;
when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and
removing the items and restoring the site on which they are located; and
capitalised borrowing costs.
Depreciation

Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed
and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately.
Depreciation is recognised as an expense in profit or loss on a straight-line basis over the estimated useful lives of each component
of an item of property, plant and equipment, unless it is included in the carrying amount of another asset. Leased assets are
depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain
ownership by the end of the lease term.
Depreciation is recognised from the date that the property, plant and equipment are installed and are ready for use, or in respect
of internally constructed assets, from the date that the asset is completed and ready for use.
62


3.4 Property, plant and equipment (contd)

Depreciation (contd)
The estimated useful lives for the current and comparative years are as follows:
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate.
Leasehold land
Leasehold properties
Medical equipment
Furniture and fittings
Office equipment
Motor vehicles
Computers
Renovations
Facilities equipment
99 years
50 years
8 to 10 years
10 years
5 to 10 years
10 years
3 to 6 years
Shorter of 6 years and term of lease
10 years
3.5 Intangible assets and goodwill

Goodwill

Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For the measurement of goodwill at
initial recognition, see note 3.1.
Other intangible assets
Other intangible assets, consist of (a) assignment fees that relate to amounts paid to secure the tenancy of certain clinic premises
and (b) membership rights.
Assignment fees that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation
and accumulated impairment losses.
Membership rights that are acquired by the Group and have infinite useful lives are measured at cost less accumulated impairment
losses.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit
or loss as incurred.
Amortisation

Amortisation is calculated based on the cost of the asset, less its residual value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than
goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative years are as
follows:
Amortisation methods, useful lives and residual values are reviewed at the end of each financial year-end and adjusted if
appropriate.
Assignment fees
10 years
63


3.6 Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the
ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment
property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in profit
or loss.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed
investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment
property to a working condition for their intended use and capitalised borrowing costs.
Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and
the carrying amount of the item) is recognised in profit or loss. When an investment property that was previously classified as
property, plant and equipment is sold, any related amount included in the revaluation reserve is transferred to retained earnings.
When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date of
reclassification becomes its cost for subsequent accounting.
Property that is being constructed for future use as investment property is accounted for at fair value.
3.7 Leased assets

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases.
Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of
the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting
policy applicable to that asset.
Other leases are operating leases and are not recognised in the Groups statement of financial position.
3.8 Inventories

Inventories, comprising mainly pharmaceutical and medical supplies, are measured at the lower of cost and net realisable value.
Cost is determined using the weighted average cost formula and comprises all costs of purchase and other costs incurred in
bringing the inventories to their present location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and
estimated costs necessary to make the sale.
3.9 Impairment

Non-derivative financial assets
A financial asset not carried at fair value through profit or loss, is assessed at the end of each reporting period to determine
whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss
event(s) has occurred after the initial recognition of the asset, and that the loss event(s) has an impact on the estimated future
cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount
due to the Group on terms that the Group would not consider otherwise, and indications that a debtor or issuer will enter
bankruptcy.
64


3.9 Impairment (contd)

Non-derivative financial assets (contd)
Loans and receivables
The Group considers evidence of impairment for loans and receivables at both a specific asset and collective level. All individually
significant receivables are assessed for specific impairment. All individually significant loans and receivables found not to be
specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans
and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and
receivables with similar risk characteristics.
In assessing collective impairment, the Group uses historical trends of the probability of default, timing of recoveries and the
amount of loss incurred, adjusted for managements judgement as to whether current economic and credit conditions are such
that the actual losses are likely to be greater or less than suggested by historical trends.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying
amount and the present value of the estimated future cash flows discounted at the assets original effective interest rate. Losses
are recognised in profit or loss and reflected in an allowance account against loans and receivables. Interest on the impaired
asset continues to be recognised. When a subsequent event causes the amount of impairment loss to decrease, the decrease
in impairment loss is reversed through profit or loss.
Non-financial assets
The carrying amounts of the Groups non-financial assets, other than investment property and inventories, are reviewed at
each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets
recoverable amount is estimated. For goodwill, and intangible assets that have indefinite useful lives or that are not yet available
for use, the recoverable amount is estimated each year at the same time. An impairment loss is recognised if the carrying amount
of an asset or its related cash-generating unit (CGU) exceeds recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing,
assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows
from continuing use that are largely independent of the cash inflows of other assets or CGUs. Subject to an operating segment
ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that
the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting
purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the
synergies of the combination.
The Groups corporate assets do not generate separate cash inflows and are utilised by more than one CGU. Corporate assets
are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which
the corporate asset is allocated.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce
the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other
assets in the CGU (group of CGUs) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods
are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.
65


3.10 Employee benefits

Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate
entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution
pension plans are recognised as an employee benefit expense in profit or loss in the periods during which related services are
rendered by employees.
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the
Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee,
and the obligation can be estimated reliably.
Share-based payment transactions
The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, with
a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The
amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market
performance conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the
number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such
conditions and there is no true-up for differences between expected and actual outcomes.
3.11 Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
3.12 Revenue

Rendering of services
Revenue from rendering of services is recognised in profit or loss upon provision of healthcare, hospital and insurance services.
Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over the term of the lease. Lease
incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Contingent rentals
are recognised as income in the accounting period in which they are earned.
66


3.13 Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease
incentives received are recognised as an integral part of the total lease expense, over the term of the lease.
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the
outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic
rate of interest on the remaining balance of the liability.
Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease
when the lease adjustment is confirmed.
3.14 Finance income and expenses

Finance income comprises interest income from bank deposits. Interest income is recognised as it accrues in profit or loss,
using the effective interest method.
Finance expenses comprises interest expense on borrowings that are recognised in profit or loss. Borrowing costs that are not
directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the
effective interest method.
Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either finance income
or finance expenses depending on whether foreign currency movements are in a net gain or net loss position.
3.15 Tax

Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the
extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing of the
reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future; and
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the Group expects,
at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. For investment property
that is measured at fair value, the presumption that the carrying amount of the investment property will be recovered through
sale has not been rebutted. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
67


3.15 Tax (contd)

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it
is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and
whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open
tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment
relies on estimates and assumptions and may involve a series of judgements about future events. New information may become
available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax
liabilities will impact tax expense in the period that such a determination is made.
3.16 Earnings per share

The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing
the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding during the year, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable
to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for
the effects of all dilutive potential ordinary shares, which comprise share options granted to employees.
3.17 Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Groups other components. All
operating segments operating results are reviewed regularly by the Groups Chairman to make decisions about resources to be
allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Groups Chairman include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Companys
headquarters), head office expenses, and tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the year to acquire property, plant and equipment, and intangible
assets other than goodwill.
3.18 New standards and interpretations not adopted

68
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after
1 January 2013, and have not been applied in preparing these financial statements. None of these are expected to have a
significant effect on the financial statements of the Group and the Company.
At 31 December 2013 89,583
59,156
31,186
4,650
740
523
10,484
8,869
2,316
1,136
208,643

Cost

At 1 January 2012
83,012
55,144
26,713
3,925
814
507
6,007
8,182
2,020

186,324

Reclassification from

investment properties 6,571
3,767

10,338
Additions

245 3,287 1,005 122
121 3,180 1,545
232
9,737

Disposals

(61)

(100)
(220) (2)
(383)
Write-off

(308) (203) (78)

(312)
(262)
(15)
(1,178)

Effect of movements

in exchange rates

(62)
(9)
(2)

(3)
(68)

(144)

At 31 December 2012 89,583
59,156
29,569
4,718
856
528
8,652
9,397
2,235

204,694
Additions

2,503
619 107
2,664
1,015
142
1,136 8,186

Disposals

(356)

(58) (25)
(439)
Write-off

(550) (698) (223)
(5) (775) (1,608)
(36)
(3,895)

Effect of movements

in exchange rates

20
11

1
65

97

Furniture
Fixed asset

Leasehold Leasehold Medical
and
Office
Motor
Facilities
work in

land
properties equipment fittings equipment vehicles Computers Renovations equipment progress
Total

Group
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
69
70
At 31 December 2013
82,010
At 31 December 2012 83,289

49,967
51,320
10,262
10,188
2,578
2,409
231
230
273
326
4,430
3,267
2,056
2,157
713
702
1,136
153,656
153,888

At 31 December 2013
7,573
9,189
20,924
2,072
509
250
6,054
6,813
1,603

54,987

Carrying amounts

At 1 January 2012
77,997
48,658
9,253
1,792
221
257
1,158
1,981
579

141,896
Accumulated

depreciation

At 1 January 2012
5,015
6,486
17,460
2,133
593
250
4,849
6,201
1,441

44,428

Depreciation charge

for the year
1,279
1,350
2,273
347
99
52
1,059
1,337
107

7,903
Disposals

(52)

(100) (220)

(2)

(374)

Write-off

(280)
(168)
(65)
(301)
(249) (13)
(1,076)

Effect of movements

in exchange rates

(20)
(3)
(1)

(2)
(49)

(75)

At 31 December 2012
6,294
7,836
19,381
2,309
626
202
5,385
7,240
1,533

50,806

Depreciation charge

for the year
1,279
1,353
2,414
380
103
53
1,443
1,121
122

8,268
Disposals

(315)

(2)

(25)

(342)
Write-off

(542) (620) (220)
(5) (774) (1,605)
(27)
(3,793)

Effect of movements

in exchange rates

(14)
3

2
57

48
4 Property, plant and equipment (contd)

Furniture
Fixed asset

Leasehold
Leasehold
Medical and Office Motor Facilities
work in

land
properties equipment fittings equipment vehicles Computers Renovations equipment progress
Total

Group
$000 $000 $000
$000
$000 $000
$000 $000 $000 $000 $000
396
403
3,899
3,987
12,239
At 31 December 2013
878
1,034
176
(332)
713
1,080
174
(541)
269
415
63
(209)
231
195
41
(5)
2,586
2,526
551
(491)
3,140
4,122
514
(1,496)
7,817
9,372
1,519
(3,074)
At 31 December 2012
At 31 December 2013
890
816
1,073
1,110
127
157
172
213
1,313
1,008
847
851
4,422
4,155

Carrying amounts

At 1 January 2012
444
1,019
146
253
582
798
3,242

At 31 December 2012

Depreciation charge for the year
Write-off

Accumulated depreciation

At 1 January 2012
988
1,065
399
155
2,352
3,683
8,642

Depreciation charge for the year
137
173
66
40
500
576
1,492

Disposals
(5)

(152)
(157)

Write-off
(86) (158)
(50) (174) (137)
(605)
1,786
1,768
At 31 December 2013
1,850
2,190
572
408
3,534
4,973
13,527
252 183
36
859 511
1,841
(334)
(587)
(212)
(5)
(494)
(1,497) (3,129)

At 31 December 2012

Additions
Write-off

Cost

At 1 January 2012
1,432
2,084
545
408
2,934
4,481
11,884

Additions
532 319
81
927 635
2,494

Disposals
(12)

(152)
(164)

Write-off
(102) (213)
(54) (175) (143)
(687)

Furniture

Medical and Office Motor

equipment fittings equipment vehicles Computers Renovations Total

Company
$000 $000 $000 $000 $000 $000 $000
71


Details of major leasehold land and properties of the Group are set out below:

Description/Location
Gross Floor
Area (sq m)
Tenure
Group
Carrying Amount
2013
2012
$000
$000
HDB shop with living quarters located

135.0
99 years
840
866
at Blk 283, Bishan St 22, #01-177,
commencing from
Singapore 570283, held for use as
01/02/1991
a primary healthcare clinic

A factory unit, located at
112.0
99 years
241
248

196 Pandan Loop, #06-05
commencing from

Pantech Industrial Complex,
27/1/1984

Singapore 128384, held for use

as a store

152.0
86 years
1,168
1,204

at Blk 722 Ang Mo Kio Ave 8, #01-2825,
commencing from

01/10/1993


250.0
91 years
1,480
1,522

at Blk 131 Jurong East St 13, #01-267,
commencing from

01/04/1993


115.0
78 years
927
953

at Blk 177 Toa Payoh Central, #01-170,
commencing from

01/10/1992


153.0
84 years
739
759

at Blk 203 Bedok North St 1, #01-467,
commencing from

01/07/1992


A hospital building, located at
28,604.9*
99 years
126,582
129,057

585 North Bridge Road,
commencing from

01/03/1979

a hospital and medical centre

72
131,977
134,609
Includes commercial space of 3,674.6 sq m (2012: 3,661.0 sq m) classified as investment property.
Source of estimation uncertainty

The cost of property, plant and equipment are depreciated on a straight-line basis over their useful lives. Management estimates
the useful lives of these property, plant and equipment to be between 3 to 99 years. The Group reviews annually the estimated
useful lives of property, plant and equipment based on factors that include asset utilisation, internal technical evaluation and
technological changes. It is possible that future results of operations could be materially affected by changes in these estimates
brought about by changes in these factors. A reduction in the estimated useful lives of property, plant and equipment would
increase depreciation expense and decrease non-current assets.


Source of estimation uncertainty (contd)
The estimates of recoverable amounts were based on either the fair value of the property, plant and equipment determined by a
firm of independent professional valuers or the value in use of the property, plant and equipment determined by management.
The fair value is based on market value, being the estimated amount for which a property could be exchanged on the date of the
valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties
had each acted knowledgeably, prudently and without compulsion. The recoverable amounts could change significantly as a
result of changes in market conditions and the assumptions used in determining the value in use.
5 Intangible assets

Group
Membership rights
$000
Assignment fees
$000
Goodwill
$000
Total
$000
Cost

At 1 January 2012,

31 December 2012 and

31 December 2013
164
612
152
928

Accumulated amortisation

and impairment losses

At 1 January 2012

612

612

Impairment loss

152
152

At 31 December 2012 and

31 December 2013

612
152
764

Carrying amounts

At 1 January 2012
164

152
316


31 December 2013
164

164

Company
Membership rights
$000
Goodwill
$000
Cost

At 1 January 2012,

31 December 2012 and

31 December 2013
93
152

Accumulated amortisation

and impairment losses

At 1 January 2012

Impairment loss

152


31 December 2013

152

Carrying amounts

At 1 January 2012
93
152


31 December 2013
93

Total
$000
245
152
152
245
93
Goodwill represents the excess of the purchase consideration over the fair value of the net identifiable assets acquired from the
purchase of a clinic business. In 2012, the amount was fully impaired as the Group estimates that the carrying amount is not
recoverable.
73

6 Investment properties

Note 2013 2012
Group
$000
$000

At 1 January
194,500
199,700

Reclassification to property, plant and equipment

(10,338)
Disposal
18
(98,922)

Development related costs
922
1,200

Change in fair value
3,900
3,938

At 31 December
In 2012, premises previously leased to a third party became owner-occupied. Accordingly, a portion of the leasehold land and
building previously classified under investment properties were transferred and categorised as property, plant and equipment.

Gross Floor

Description/Location
Area (sq m)
Tenure

Units within Raffles Hospital, located
3,674.6
99 years

at 585 North Bridge Road,
(2012: 3,661.0)
commencing from

Singapore 188770
01/03/1979

Units within Thong Sia building, located
3,964.0
Freehold

at 30 Bideford Road,

Singapore 229922

Units within Samsung Hub, located
491.0
999 years

at 3 Church Street,
commencing from

Singapore 049483
25/01/1827
100,400
194,500
Group
Fair Value
2013
$000
2012
$000
84,000*
81,000*
98,000
16,400
15,500
100,400
194,500
Investment properties relate to the shop units within the commercial property, Raffles Hospital building, units of commercial
space within Samsung Hub and Thong Sia building, that are leased to external customers. Each of the leases contains an initial
non-cancellable period of 1 to 10 years. This is subject to the terms and conditions of the lease agreements entered into and
subsequent renewals are negotiated with the respective lessee. On 31 October 2013, the Group disposed off its wholly-owned
subsidiary, Raffles Medical Management Pte Ltd (now known as Orchard Investment Holdings Pte Ltd), that owned Thong Sia
building (note 18).
As at 31 December 2013, investment properties are stated at fair value based on independent desktop valuation on units within
Raffles Hospital building and Samsung Hub by Jones Lang LaSalle Property Consultants Pte Ltd on the basis of open market
valuation.
Valuations reflect, when appropriate, the type of tenants actually in occupation or responsible for meeting lease commitments
or likely to be in occupation after letting vacant accommodation, and the markets general perception of their creditworthiness;
the allocation of maintenance and insurance responsibilities between the Group and the lessee; and the remaining economic
life of the property. When rent reviews or lease renewals are pending with anticipated reversionary increases, it is assumed that
all notices and where appropriate counter-notices have been served validly and within the appropriate time.
74
Includes fair value of carpark areas of about 17,628.3 sq m.

7 Trade and other receivables

Group Company
2013 2012 2013 2012

$000
$000
$000
$000

Trade receivables 34,713 31,686 11,012
12,790

Allowance for doubtful receivables
(2,892)
(2,678)
(397)
(400)

Net receivables 31,821 29,008 10,615
12,390

Deposits 8,007 2,310 1,909
1,607

Loans to directors

- Directors of subsidiaries
87
137
87
137

Staff loans 1,321 1,513 1,042
1,077

Other receivables 1,329 3,414 176 109

Amounts due from subsidiaries:

- trade
1,462
84

- non-trade (see note below)

799
50,213
42,565 36,382 16,090
65,617

Prepayments 1,663 1,787 570 619
44,228 38,169 16,660
66,236
Company

2013 2012

$000
$000

Amounts due from subsidiaries (non-trade)
2,899
52,313

(2,100)
(2,100)

Net receivables
799
50,213

The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on demand.
The loans to directors were granted in accordance with the Groups Loan Scheme for Executive Directors, approved by the
shareholders at an Extraordinary General Meeting held on 29 October 1997.
The Group and the Companys exposure to credit and currency risks, and impairment losses related to trade and other receivables
are disclosed in note 15.
75

8 Cash and cash equivalents

Group Company
2013 2012 2013 2012

$000
$000
$000
$000

Fixed deposits 151,710 93,948 115,000 76,455

Cash at bank and in hand *
114,197
8,534
105,046
768
265,907 102,482 220,046 77,223

Includes interest-bearing cash deposit
The weighted average effective interest rates per annum relating to cash and cash equivalents, at the reporting date for the
Group and Company are 0.90% (2012: 0.71%) and 1.03% (2012: 0.79%) respectively.
Interest rates reprice at intervals of one week to three months.
9 Share capital and reserves

Share capital

Note
2013

No. of shares

Group and Company
(000)
$000

2012
No. of shares
(000)
$000
Fully paid ordinary shares, with no par value:

At 1 January
544,817
207,188
534,333
190,344
Issue of shares under scrip dividend
4,932
14,844
6,066
12,435
Issue of shares under share option scheme
10
4,099
6,128
4,418
4,409
553,848
228,160
544,817 207,188
Ordinary shares
The holders of ordinary shares (excluding treasury shares) are entitled to receive dividends as declared from time to time, and
are entitled to one vote per share at meetings of the Company. All shares (excluding treasury shares) rank equally with regard
to the Companys residual assets.
During the financial year, the Company issued 4,931,545 (2012: 6,065,666) shares at $3.01 (2012: $2.05) per share to
shareholders in lieu of cash dividends of 3.5 cents (2012: 3.0 cents) per ordinary share pursuant to Raffles Medical Group Ltd
Scrip Dividend Scheme.
76

9 Share capital and reserves (contd)

Ordinary shares (contd)
Pursuant to the option plans i.e. RMG 2000 Scheme and RMG 2010 Scheme, a total of 4,099,000 (2012: 4,418,000) new
fully-paid ordinary shares were also issued during the year for cash by the Company as follows:

Date of Grant
Exercise price

$

08/04/2002
0.230
31/03/2003
0.185
01/04/2004
0.330
01/04/2005
0.420
03/04/2006
0.710
02/04/2007
1.140
02/04/2007
1.150
01/04/2008
1.240
01/04/2009
0.780
01/04/2010
1.660
01/04/2011
2.200
02/04/2012
2.340

No. of Shares
2013
2012

139,000
84,000
168,000
475,000

131,000
269,000
501,000
802,000
851,000
679,000
216,000
158,000
242,000
309,000
280,000
120,000
337,000
420,000
1,276,000
836,000
224,000
4,099,000 4,418,000
Unissued ordinary shares of the Company under options granted to eligible directors and employees under the Companys
Employee Share Option Scheme are disclosed in note 10.
Currency translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign
operations whose functional currencies are different from the functional currency of the Company, and exchange differences
on monetary items which form part of the Groups net investment in foreign operations, provided certain conditions are met.
Share option reserve
The share option reserve comprises the cumulative value of employee services received for the issue of share options.
10 Employee share options

RMG 2000 Scheme
On 31 October 2000, the shareholders of the Company approved the Raffles Medical Group (2000) Share Option Scheme
(RMG 2000 Scheme) at the Extraordinary General Meeting. The Scheme is administered by the Committee comprising three
directors, Dr Wee Beng Geok, Professor Lim Pin and Dr Loo Choon Yong.
Information regarding the scheme is as follows:
(i)
Subscription price:
(a) The exercise price of the options is determined at the average closing price of the Companys shares on the Singapore
Exchange Securities Trading Limited on the three business days immediately preceding the date of grant of such
options; or
(b) The discounted value of the share price determined under (a) above, provided that the maximum discount shall not
exceed 20% of (a) above.
77

10 Employee share options (contd)

RMG 2000 Scheme (contd)
(ii) The options vest on such date in respect of such proportion of the option amount as the Committee may prescribe but
shall be no earlier than 1 year after the grant date for (i)(a) and 2 years after the grant date for (i)(b).
(iii) The options granted expire after 10 years for employees and 5 years for non-employees from the grant date unless they
are cancelled or have lapsed.
RMG 2010 Scheme
At the Annual General Meeting held on 30 April 2010, the shareholders of the Company adopted the Raffles Medical Group
(2010) Share Option Scheme (RMG 2010 Scheme) for the Company. The existing RMG 2000 Scheme was concurrently
terminated. The termination of the RMG 2000 Scheme will, however, not affect the subscription rights comprised in options
granted pursuant to the RMG 2000 Scheme prior to the termination. Such options will continue to be exercisable in accordance
with the rules of the RMG 2000 Scheme. However, no further options will be granted under the RMG 2000 Scheme.
Information regarding the scheme is as follows:
(i)
Subject to any adjustment pursuant to any variation of the share capital of the Company, the subscription price for each
share under the RMG 2010 Scheme shall be:
(a) a price equal to the average of the last dealt prices for a share, as determined by reference to the daily official list or
other publication published by the Singapore Exchange Securities Trading Limited for the three consecutive market
days immediately preceding the offer date of that option, rounded up to the nearest whole cent, provided that in
the case of a Market Price Option that is proposed to be granted to a Controlling Shareholder or an Associate of a
Controlling Shareholder, the Subscription Price for each share shall be equal to the average of the last dealt price(s)
for a share, as determined by reference to the daily official list published by the Singapore Exchange Securities Trading
Limited, for the three consecutive market days immediately preceding the latest practicable date prior to the date of
any circular, letter or notice to the Shareholders proposing to seek their approval of the grant of such options to such
Controlling Shareholder and/or Associate of a Controlling Shareholder; or
(b) the discounted value of the share price determined under (a) above, provided that the maximum discount shall not
exceed 20% of (a) above, and
(c) the prior approval of the shareholders of the Company in general meeting shall have been obtained for the making
of offers and grants of options at a discount not exceeding the maximum discount in a separate resolution (for the
avoidance of doubt, such prior approval shall be required to be obtained only once and, once obtained, shall, unless
revoked, authorise the making of offers and grants of options under the RMG 2010 Scheme at such discount for the
duration of the RMG 2010 Scheme), or
(d) the prior approval of the shareholders of the Company in general meeting shall have been obtained for the discount
exceeding 20% of the market price if it is prescribed or permitted for the time being by the Singapore Exchange
Securities Trading Limited.
(ii) The options vest on such date in respect of such proportion of the option amount as the Committee may prescribe but
shall be no earlier than 1 year after the grant date for (i)(a) and 2 years after the grant date for (i)(b).
(iii) The options granted expire after 10 years for employees and 5 years for non-employees from the grant date unless they
are cancelled or have lapsed.
The RMG 2010 Scheme is administered by a committee comprising Directors of the Company duly authorised and appointed
by the Board to administer the RMG 2010 Scheme. The Scheme is administered by the Committee comprising four directors,
Dr Wee Beng Geok, Mr Koh Poh Tiong (appointed on 2 January 2014), Professor Lim Pin and Dr Loo Choon Yong.
78


RMG 2000 Scheme and RMG 2010 Scheme
Movements in the number of share options and their related weighted average exercise prices are as follows:
Weighted
Weighted

average
No. of
average
exercise price
options
exercise price
2013
2013
2012
$
(000)
$
No. of
options
2012
(000)
Outstanding at 1 January
Granted during the year
Cancelled/Lapsed during the year
Exercised during the year
1.690
3.280
2.048
1.495
19,966
6,200
(867)
(4,099)
1.339
2.340
1.637
0.998
20,111
6,000
(1,727)
(4,418)
Outstanding at 31 December
2.178
21,200
1.690
19,966
Exercisable at 31 December
1.667
13,365
1.368
13,011
Options under RMG 2000 Scheme and RMG 2010 Scheme exercised in 2013 resulted in 4,099,000 ordinary shares being
issued at weighted average exercise price of $1.495 each.
In 2013, 867,000 options under RMG 2000 Scheme and RMG 2010 Scheme were forfeited at weighted average exercise price
of $2.048 each.
Options were exercised on a regular basis throughout the year. The weighted average share price during the year was $3.17
(2012: $2.35) per share.
Share options outstanding at the end of the year have the following expiry dates and exercise prices:

Date of grant of options
Expiry date
Exercise price

$

31/03/2003
30/03/2013
0.185
01/04/2004
31/03/2014
0.330
01/04/2005
31/03/2015
0.420
03/04/2006
02/04/2016
0.710
02/04/2007
01/04/2017
1.150
01/04/2008
31/03/2013
1.240
01/04/2008
31/03/2018
1.240
01/04/2009
31/03/2014
0.780
01/04/2009
31/03/2019
0.780
01/04/2010
31/03/2015
1.660
01/04/2010
31/03/2020
1.660
01/04/2011
31/03/2016
2.200
01/04/2011
31/03/2021
2.200
02/04/2012
01/04/2017
2.340
02/04/2012
01/04/2022
2.340
01/04/2013
31/03/2018
3.280
01/04/2013
31/03/2023
3.280
Options outstanding
2013
2012
(000)
(000)

142
207
586
1,012

903
150
1,769
160
2,468
180
2,953
350
4,346
430
5,544
139
226
375
1,067
1,217
122
1,099
350
2,258
235
3,213
380
3,662
510
5,113
21,200
19,966
The fair value of services received in return for share options granted are measured by reference to the fair value of share options
granted. The estimate of the fair value of the services received is measured based on a Black-Scholes Option Pricing model.
79


RMG 2000 Scheme and RMG 2010 Scheme (contd)

Date of grant of options

Fair value of share options and assumptions

Fair value at measurement date

Share price

Exercise price

Expected volatility

Expected option life

Expected dividend yield

Risk-free interest rate
Group
01/04/2013
02/04/2012
$0.548 - $0.593
$0.383 - $0.416
$3.29
$3.28
22.11%
4.2 - 5.1 years
1.57%
1.44%
$2.32
$2.34
21.61%
4.2 - 5.0 years
1.55%
1.84%
The expected volatility is based on the historic volatility (calculated based on the weighted average expected life of the share
options), adjusted for any expected changes to future volatility due to publicly available information.
There are no market conditions associated with the share option grants. Service conditions and non-market performance
conditions are not taken into account in the measurement of the fair value of the services to be received at the grant date.
11 Deferred tax liabilities

Movements in deferred tax assets and liabilities of the Group during the year are as follows:

Recognised

At
in profit
At
1 January
or loss
31 December

2012
(note 17)
2012
$000
$000
$000

Group
Tax value of unabsorbed wear
and tear allowances
Other items
1,748
(1)
(168)
152
1
(62)
1,900

(230)
Recognised
in profit
At
or loss
31 December
(note 17)
2013
$000
$000
447

10
1,579
91
1,670
457

Company

471
(72)
399
101

Other items
(112)
15
(97)
32

80
359
(57)
302
133
2,347
(220)
2,127
500
(65)
435

11 Deferred tax liabilities (contd)

Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when the deferred taxes relate to the same tax authority. The amounts determined after appropriate offsetting
are included in the statement of financial position as follows:

Group Company
2013 2012 2013 2012

$000
$000
$000
$000

Deferred tax liabilities
The following temporary differences have not been recognised:
2,127
1,670
435
302
Group

2013 2012

$000
$000

Tax losses
1,643
1,536

The tax losses are subject to agreement by the tax authorities and compliance with tax regulations in the respective countries
in which certain subsidiaries operate. Deferred tax assets have not been recognised in respect of these items because it is not
probable that future taxable profit will be available against which the Group can utilise the benefits therefrom.
12 Trade and other payables

Group Company
2013 2012 2013 2012

$000
$000
$000
$000

Trade payables 20,780 24,775 3,053 4,343

Accrued operating expenses
37,566
30,355
10,610
8,494

Amounts due to subsidiaries:

- trade

76,591
72,553

- non-trade

6,234
7,821

Deferred income
681
77

Deposits received
4,182
3,571

Other payables 9,455 7,540 2,342
1,161
72,664 66,318 98,830
94,372

The non-trade amounts due to subsidiaries are unsecured, interest-free and repayable on demand.
The Group and the Companys exposure to currency and liquidity risk related to trade and other payables is disclosed in
note 15.
81

13 Insurance contract provisions

Analysis of movements in insurance contract provisions

Group

------------- 2013 -------------
------------- 2012 -------------

Reinsurers
Reinsurers

Gross
share
Net
Gross
share
Net

$000 $000 $000 $000 $000 $000

At 1 January
11,279
(5,117)
6,162
9,400
(4,381)
5,019

Provision made
42,572
(21,425)
21,147
23,475
(7,693)
15,782

Provision used
(27,343)
9,734
(17,609)
(21,596)
6,957
(14,639)

At 31 December
26,508
(16,808)
9,700
11,279
(5,117)
6,162
The Group commenced its underwriting activities from 1 January 2005. Accordingly, the Groups policy liabilities related to those
risks written from 1 January 2005 and the Group is not liable for risks prior to this date. Historical data collated by management
were used for determining the expected ultimate claims liability. This data was also supplemented by externally available
information on industry statistics and trend.
The monitoring and evaluation of claim is actively pursued with processes. This is to ensure the adequacy of the provisions
required to meet the obligations of the Groups future liabilities. An external actuary performs regularly a valuation of the policy
liabilities in accordance with the Monetary Authority of Singapores regulations. The adequacy of the estimated policy liabilities
are verified by the actuary.
Source of estimation uncertainty
Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectation
of future events that are believed to be reasonable under the circumstances. However, future claims experience might deviate,
possibly materially from the projections. Among other reasons, this is because the ultimate claim amount will be affected by
future external events, for example, changes in the interpretation of policy conditions and the attitudes of claimants towards
settlement of their claims.
14 Interest-bearing liabilities

This note provides information about the contractual terms of the Groups interest-bearing loans and borrowings, which are
measured at amortised cost. For more information about the Groups exposure to interest rate, foreign currency and liquidity
risk, see note 15.

Group Company
2013 2012 2013 2012

$000
$000
$000
$000

82
Current liabilities
Unsecured bank loans
4,755
19,747
4,755
3,747

14 Interest-bearing liabilities (CONTD)

Terms and debt repayment schedule
Terms and conditions of outstanding loans and borrowings are as follows:

Effective
Year of
Face
Carrying

Currency interest rate maturity value amount

%
$000 $000
Group
2013

Fixed rate loan
HK$
1.04
2014
4,755
4,755

2012

Floating rate loan
S$
0.92
2013
16,000
16,000

Fixed rate loan
HK$
0.83
2013
3,747
3,747
19,747 19,747

Company
2013

Fixed rate loan
HK$
1.04
2014
4,755
4,755

2012

Fixed rate loan
HK$
0.83
2013
3,747
3,747

15 Financial instruments
Overview

The Group has exposure to the following risks from its use of financial instruments:
This note presents information about the Groups exposure to each of the above risks, the Groups objectives, policies and
processes for measuring and managing risk, and the Groups management of capital.
Risk management framework
The Board of Directors has overall responsibility for the establishment and oversight of the Groups risk management framework.
The Board through the Audit Committee is responsible for developing and monitoring the Groups risk management policies.
The Groups risk management policies are established to identify and analyse the risks faced by the Group. Management together
with Audit Committee set appropriate risk limits and controls, and monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Groups activities. The Group, through
its training and management standards and procedures, aims to develop a disciplined and constructive control environment in
which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Groups risk management policies and procedures,
and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Audit Committee
is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management
controls and procedures, the results of which are reported to the Audit Committee.
credit risk
liquidity risk
market risk
83

15 Financial instruments (CONTD)

Credit risk
The Group has a credit policy in place which establishes credit limit for customers and monitors their balances on an ongoing
basis. Credit evaluations are performed on customers requiring credit over certain amount. The credit quality of customers is
assessed after taking into account its financial position and past experience with the customers.
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Groups receivables from customers.
The carrying amount of financial assets in the statement of financial position represents the Group and the Companys respective
maximum exposure to credit risk, before taking into account any collateral held.
The Groups primary exposure to credit risk arises through its trade receivables. Concentration of credit risk relating to trade
receivables is limited due to the Groups many varied customers. The Groups historical experience in the collection of accounts
receivable falls within the recorded allowances. Due to these factors, management believes that no additional credit risk beyond
amounts provided for collection losses is inherent in the Groups trade receivables.

The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other
receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures,
and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet
identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.
The allowance account in respect of trade and other receivables is used to record impairment losses unless the Group is satisfied
that no recovery of the amount owing is possible. At that point, the financial asset is considered irrecoverable and the amount
charged to the allowance account is written off against the carrying amount of the impaired financial asset.
Cash and fixed deposits are placed with banks and financial institutions which are regulated.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
reporting date was:

Group Company
2013 2012 2013 2012

$000
$000
$000
$000


(excluding prepayments)
42,565
265,907
36,382
102,482
16,090
220,046
65,617
77,223
Recognised financial assets
308,472
138,864
236,136
142,840
84


Impairment losses
The ageing of trade and other receivables (excluding prepayments) at the reporting date is:
Impairment Impairment
Gross losses Gross losses
2013 2013 2012 2012
$000 $000 $000 $000

Group
No credit terms
9,336

5,724
Not past due
10,131

8,821
Past due 0 30 days
9,280

9,282
Past due 31 365 days
16,410
2,596
14,214
More than one year
300
296
1,019
37
57
2,457
127
45,457 2,892 39,060 2,678

Company

No credit terms
4,984
2,100
54,029
2,100

Not past due
4,276

4,016

Past due 0 30 days
3,672

3,366

Past due 31 365 days
5,655
397
5,839
400

More than one year

867
18,587 2,497 68,117 2,500

The change in impairment loss in respect of trade and other receivables during the year is as follows:

Group Company
2013 2012 2013 2012

$000
$000
$000
$000

At 1 January
Impairment loss recognised
Impairment loss utilised
2,678
707
(493)
2,850
649
(821)
2,500
463
(466)
2,505
546
(551)
At 31 December
2,892
2,678
2,497
2,500
The Group and the Company believes that the unimpaired amounts that are past due are still collectible in full, based on historic
payment behaviour and extensive analyses of customer credit risk, including underlying customers credit ratings, when available.
Based on the Groups monitoring of customer credit risk, the Group believes that apart from the above, no impairment allowance
is necessary in respect of trade receivables.
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Groups approach to managing liquidity is to ensure, as far as
possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Groups reputation.
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to
finance the Groups operations and to mitigate the effects of fluctuations in cash flows.
85


Liquidity risk (contd)
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements:

Contractual
cash flows
$000
Within 1
year
$000
(4,759)
(71,983)
(4,759)
(71,983)
(76,742)
(76,742)

31 December 2012


S$ floating rate loan
16,000

HK$ fixed rate loan
3,747

Trade and other payables*
66,241
(16,016)
(3,750)
(66,241)
(16,016)
(3,750)
(66,241)
(86,007)
(86,007)
(4,759)
(98,830)
(4,759)
(98,830)
Carrying
amount
$000
Group
31 December 2013
HK$ fixed rate loan
4,755
71,983
76,738
85,988

Company

31 December 2013


HK$ fixed rate loan
4,755

98,830

103,585
31 December 2012
HK$ fixed rate loan
3,747
94,372
98,119
(103,589)
(103,589)
(3,750)
(94,372)
(3,750)
(94,372)
(98,122)
(98,122)
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect
the Groups income or the value of its holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the return.
Currency risk
In respect of other monetary assets and liabilities held in currencies other than the Singapore dollars, the Group ensures that
the net exposure to currency fluctuation is kept to an acceptable level. The Group does not have significant currency risks.
86
Excludes deferred income


Interest rate risk
The Groups exposure to changes in interest rates relates primarily to interest-earning financial assets and interest-bearing
financial liabilities. Interest rate risk is managed by the Group on an on-going basis with the primary objective of limiting the
extent to which net interest expense could be affected by an adverse movement in interest rates.
Cash flow sensitivity analysis for variable rate instruments
A change of 50 basis points (bp) in interest rates at the reporting date would have (decreased)/increased profit before tax by
the amounts shown below. This analysis assumes that all other variables in particular foreign currency rates, remain constant.
The analysis is performed on the same basis for 2012.

Group

31 December 2013

Variable rate instruments

31 December 2012

Variable rate instruments
Profit before tax

50 bp 50 bp
increase decrease
$000 $000
(80)
80
Capital management
The Boards policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board of Directors monitors the return on equity, which the Group defines as net
income divided by total shareholders equity excluding non-controlling interest. The Board also monitors the levels of dividends
to ordinary shareholders.
The Board seeks to maintain a balance between higher returns that might be possible with higher levels of borrowings and the
advantages and security afforded by a sound capital position.
The Group has a scrip dividend scheme to provide an opportunity for ordinary shareholders to make an election to receive
dividends in the form of shares, credited as fully paid up instead of cash. It will enable ordinary shareholders to participate in the
equity capital of the Group without incurring brokerage fees, stamp duty and other related costs. The Group will also benefit from
the participation by ordinary shareholders in the scheme as, to the extent that ordinary shareholders elect to receive dividend
in the form of shares, the cash which would otherwise be payable by way of cash dividends may be retained to fund the growth
and expansion of the Group. The issue of shares in lieu of cash dividends under the scheme will also enlarge the Groups share
capital base and the retention of cash will strengthen its working capital position.
The Group has a defined share buy-back plan to purchase its own shares on the market; the timing of these purchases depends
on market prices.
The Company and its subsidiaries are not subject to externally imposed capital requirements, except for Raffles Health Insurance
Pte Ltd which is required to comply with applicable insurance regulations.
87


Accounting classifications and fair values
Fair values versus carrying amount
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position,
are as follows:

Other financial

liabilities within
Total

Loans and
the scope of
carrying

receivables
FRS 39
amount
Fair value

$000 $000 $000 $000
Group

31 December 2013

Trade and other receivables #
42,565

42,565

265,907

265,907
42,565
265,907

308,472


71,983


4,755
308,472
71,983
4,755
71,983
4,755

76,738

31 December 2012

36,382

102,482

76,738
76,738

138,864


66,241


19,747
308,472
36,382
102,482
36,382
102,482
138,864
138,864
66,241
19,747

85,988
85,988

Company

31 December 2013

16,090

16,090

220,046

220,046
66,241
19,747
85,988
16,090
220,046

236,136


98,830


4,755
236,136

103,585

31 December 2012

65,617

77,223

103,585

142,840


94,372


3,747
142,840
94,372
3,747
94,372
3,747

98,119

# Excludes prepayments

* Excludes deferred income
98,119
98,119
88
98,830
4,755
65,617
77,223
236,136
98,830
4,755
103,585
65,617
77,223
142,840

16 Profit for the year

The following items have been included in arriving at profit for the year:

Group

2013 2012
$000
$000

707
649
Change in fair value in investment properties
(3,900)
(3,938)
Contributions to defined contribution plans,
included in staff costs
7,583
8,507
(20,388)
Gain on disposal of property, plant and equipment

(43)
(88)
Loss on disposal of property, plant and equipment
2
Interest expense
- bank loans
49
235
Interest income
(960)
(465)
Audit fees paid to:
- auditors of the Company
123
113
- other auditors
11
11
Non-audit fees paid:
- auditors of the Company
124
10
- other auditors
10
10
Property, plant and equipment written-off
102
102
Value of employee services received for issue of share options,
2,946
2,236
included in staff costs

152
17 Tax expense

Group
2013 2012
$000
$000

Tax recognised in profit or loss

Current tax expense

Current year

Overprovided in prior years
10,469
(983)
9,536
(251)

Deferred tax expense

Movements in temporary differences

Underprovided in prior years
9,486
9,285
457

35
56

Tax expense
457
91
9,943 9,376
89

17 Tax expense (CONTD)

Reconciliation of effective tax rate

Group
2013 2012
$000
$000

Profit before tax

Tax using the Singapore tax rate of 17% (2012: 17%)

Non-deductible expenses

Tax exempt income

Tax incentives

Tax effect of unrecognised tax losses

Overprovided in prior years
Others
95,238
66,585
16,190
11,319
1,217
953
(4,363)
(938)
(2,225)
(1,914)
54
151
(983)
(195)
53
9,943
9,376
18 Disposal of a subsidiary

On 31 October 2013, the Group disposed a wholly owned subsidiary, Raffles Medical Management Pte Ltd (now known as
Orchard Investment Holdings Pte Ltd) for net proceeds of $119,232,000 after deducting costs incurred upon disposal. As a
result, the Group recognised a gain on disposal of $20,388,000.
Identifiable assets and liabilities disposed:
Note
$000
Freehold investment property

6
98,922
102
(180)
Net identifiable assets disposed

Gain on disposal
98,844
20,388

Cash inflow from disposal

119,232
19 Earnings per share

Group

Basic earnings per share is based on:

Net profit attributable to ordinary shareholders

Group
2013 2012
$000
$000
84,892
56,849
No. of
No. of
shares shares
(000)
(000)
Issued ordinary shares at beginning of the year

Effect of scrip dividend shares issued
Effect of share options exercised
544,817
2,540
2,771
534,333
3,000
2,540
Weighted average number of ordinary shares
550,128
539,873
90

19 Earnings per share (CONTD)

Group
2013 2012
$000
$000
Diluted earnings per share is based on:

Net profit attributable to ordinary shareholders
84,892
For the purpose of calculating the diluted earnings per ordinary share, the weighted average number of ordinary shares in issue
is adjusted to take into account the dilutive effect arising from the dilutive share options, with the potential ordinary shares
weighted for the period outstanding.
The effect of the exercise of share options on the weighted average number of ordinary shares in issue is as follows:

Group
56,849
2013 2012
No. of
No. of
shares shares
(000)
(000)
Weighted average number of ordinary share (basic)

Potential ordinary shares issuable under share options
550,128
6,778
539,873
5,533
Weighted average number of ordinary shares (diluted) during the year
556,906
545,406
20 Operating segments

The Group has 3 reportable segments, as described below, which are the Groups strategic business units. The strategic business
units offer different products and services, and are managed separately because they require different technology and marketing
strategies. For each of the strategic business units, the Groups Chairman reviews internal management reports regularly. The
following summary describes the operations in each of the Groups reportable segments:
Healthcare services
The operations of medical clinics and other general medical services; provision of health
insurance, trading in pharmaceutical and nutraceutical products and diagnostic equipment,
and provision of management and consultancy services.
Hospital services
The provision of specialised medical services and operation of hospital and business of medical
laboratory and imaging centre.
Investment holdings
Investment holding.
Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed
by the Groups Chairman. Segment profit is used to measure performance as management believes that such information is
most relevant in evaluating the results of certain segments relative to other entities operating within these businesses.
Inter-segment pricing is determined on mutually agreed terms.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on
a reasonable basis. Unallocated items mainly comprise deferred and current tax liabilities and assets.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used
for more than one period.
91
92
Information about reportable segments

Healthcare services
Hospital services
Investment holdings
Total
2013 2012 2013 2012 2013 2012 2013 2012
$000 $000 $000 $000 $000 $000 $000 $000

Revenue and expenses

External revenue
124,481
117,186
231,302
205,753
10,285
11,045
366,068
333,984

Inter-segment revenue
1,657 2,542 14,758 11,411 8,664 8,398 25,079 22,351

Finance expenses
(34)
(37)

(15)
(198)
(49)
(235)

(2,286)
(2,026)
(3,332)
(3,249)
(177)
(158)
(5,795)
(5,433)


(152)

(152)

Reportable segment profit before tax
10,603
10,240
56,829
47,720
9,891
11,095
77,323
69,055

Reportable segment assets
511,212 426,775 120,329 103,829 245,831 339,521 877,372 870,125

Capital expenditure
3,141 3,972 4,245 5,465 1,722 1,500 9,108 10,937

Reportable segment liabilities
132,593 120,658 54,086 49,679 203,383 299,924 390,062 470,261
20 Operating segments (contd)


Reconciliations of reportable segment revenues, profit or loss, assets and liabilities and other material items
2013 2012
$000 $000
Revenues
Total revenue for reportable segments
366,068
333,984
Elimination of inter-segment revenue
(25,079)
(22,351)

Consolidated revenue
340,989
311,633

Profit or loss

Total profit for reportable segments
77,323
69,055

Adjustment for depreciation of property, plant and equipment
(2,473)
(2,470)

20,388

Consolidated profit before tax
95,238
66,585

Assets

Total assets for reportable segments
877,372
870,125

Elimination of inter-segment assets
(303,937) (375,480)

Consolidated total assets
573,435
494,645

Liabilities

Total liabilities for reportable segments
390,062
470,261

Elimination of inter-segment liabilities
(302,943) (378,034)

Unallocated amounts-current tax and deferred tax liabilities
12,523
13,002

Consolidated total liabilities
Other material items
99,642
105,229
Reportable
segment
Consolidated
totals
Adjustments
totals
$000
$000
$000
2013

5,795
2,473
8,268

2012

5,433
2,470
7,903

The hospital building at North Bridge Road is owned by a subsidiary and classified as Investment Property in the subsidiarys
standalone financial statements. In accordance with the Groups accounting policies, investment property is measured at fair
value and not depreciated.

For the preparation of the consolidated financial statements, the hospital building is reclassified from Investment Property to
Property, Plant and Equipment as the building is used in the supply of hospital services by the Group. Accordingly, the carrying
value of the hospital building is depreciated over its useful life in the consolidated financial statements of the Group.
The amount of $2,473,000 (2012: $2,470,000) relates to the depreciation of the hospital building for the year ended 31
December 2013.
93


Geographical segments
With respect to the presentation of geographical segment information, the Groups segments are mainly managed and operating
in Singapore. Accordingly, the Group does not consider it meaningful to allocate revenues, assets and capital expenditure to
specific geographical segments.
Major customer
There is no customer within the segments that represents more than 10% of the Groups revenue.
21 Determination of fair values

A number of the Groups accounting policies and disclosures require the determination of fair value, for both financial and nonfinancial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in
the notes specific to that asset or liability.
Investment property
An external, independent valuation company, having appropriate recognised professional qualifications and recent experience
in the location and category of property being valued, values the Groups investment property every year. The fair values are
based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation
between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties had each
acted knowledgeably.
In the absence of current prices in an active market, the valuations are prepared by considering the estimated rental value of
the property. A market yield is applied to the estimated rental value to arrive at the gross property valuation. When actual rents
differ materially from the estimated rental value, adjustments are made to reflect actual rents.
Valuations reflect, when appropriate, the type of tenants actually in occupation or responsible for meeting lease commitments
or likely to be in occupation after letting vacant accommodation, the allocation of maintenance and insurance responsibilities
between the Group and the lessee, and the remaining economic life of the property. When rent reviews or lease renewals are
pending with anticipated reversionary increases, it is assumed that all notices, and when appropriate counter-notices, have
been served validly and within the appropriate time.
Share-based payment transactions
The fair value of the employee share options is measured using the Black-Scholes formula. Measurement inputs include share
price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility
adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based
on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on
government bonds). Service and non-market performance conditions attached to the transactions are not taken into account
in determining fair value.
Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of
interest at the measurement date.
Other financial assets and liabilities
The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables,
cash and cash equivalents, and trade and other payables) are assumed to approximate their fair values because of the short
period to maturity. All other financial assets and liabilities are discounted to determine their fair values.
94

22 Operating leases

Leases as lessee
Non-cancellable operating lease rentals are payable as follows:

Group Company
2013 2012 2013 2012

$000
$000
$000
$000

Within 1 year
Between 1 and 5 years
6,896
8,480
6,284
9,387
5,378
5,762
5,442
8,106
15,376 15,671 11,140 13,548

The leases typically run for an initial period of 3-6 years, with an option to renew the lease after that date. For renewed leases,
the lease payments are determined based on the prevailing market rent at the point of renewal.
Leases as lessor
The Group leases and sub-leases out its investment properties. The future minimum lease and sub-lease income receivables
under non-cancellable leases are as follows:

Group
2013 2012
$000
$000
2,718
3,498
3,592
4,436
6,216
8,028
Within 1 year
Between 1 and 5 years
During the year, $3,314,000 was recognised as rental income pertaining to investment properties held by the Group (2012:
$4,927,000). Direct expenses in relation to this rental income were as follows:

Group

Income-generating property
Vacant property
2013 2012
$000
$000
153

787
239
23 Capital commitments

At 31 December 2013, capital commitments contracted but not provided for by the Group in the financial statements amounted
to $50,543,000 (2012: $2,304,000). This relates to property development expenditure on Taman Warna and Raffles Hospital
extension.
95

24 Related parties

For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the ability,
directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions,
or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties
may be individuals or other entities.
Transactions with key management personnel
Key management personnel participate in the Employee Share Option Scheme. 1,050,000 (2012: 970,000) share options were
granted to the key management personnel of the Company during the year. The share options that were granted during the year
were on the same terms and conditions as those offered to other employees of the Company as described in note 10. At the
reporting date, 2,678,000 (2012: 2,587,000) of the share options granted to the directors of the Company were outstanding.
25 Key management personnel compensation

Key management personnel compensation comprised:

Group

Directors remuneration included in staff costs

Directors fees
Share-based benefits
2013 2012
$000
$000
13,544
306
492
9,333
235
392
14,342
9,960
26 Subsidiaries

Company

Investments in subsidiaries
Amounts due from subsidiaries (mainly non-trade)
96
2013 2012
$000
$000
38,555
203,029
31,997
231,073
241,584 263,070
The amounts due from subsidiaries are unsecured, interest-free and repayable on demand. The management of the Company
does not intend for the amounts to be repaid within the next twelve months.

26 Subsidiaries (contd)

Details of subsidiaries are as follows:

Place of

incorporation
Name of subsidiary
Principal activities
and business

Effective equity
interest held by
the Group
2013 2012
% %
Raffles Hospital Pte Ltd

Provision of general and
Singapore
100

specialised medical services

and operation of a hospital

1
Raffles Diagnostica Pte Ltd
Operation of medical laboratory
Singapore
100

and imaging centre

1
Raffles Medical Properties Pte
Investment holding
Singapore
100

Ltd and its subsidiary:

100
100
100

1
Raffles Hospital Properties
Property owner
Singapore
100
100

Pte Ltd

2
Raffles International Medical
Provision of medical evacuation
Singapore
100
100

Assistance Pte Ltd
and repatriation and provision of

medical advisory services

(currently inactive)

6
Raffles Medical Management
Property owner
Singapore

1001

Pte Ltd (now known as

Orchard Investment Holdings

Pte Ltd)

2
Raffles SurgiCentre Pte Ltd
Provision of general and
Singapore
100
100

specialised medical services

and operation of a hospital

(dormant)

1
Raffles Japanese Clinic Pte Ltd
Operation of medical clinics and
Singapore
80
80

provision of medical services

1
Raffles Health Pte Ltd
Trading in pharmaceutical and
Singapore
100
100

nutraceutical products and

diagnostic equipment

1
Aptitude (2003) Pte Ltd
Provision of advisory and
Singapore
100
100

consultancy services and

developing IT solutions

97


Details of subsidiaries are as follows: (contd)

Place of

incorporation
Name of subsidiary
Principal activities
and business

Effective equity
interest held by
the Group
2013 2012
% %
Raffles Medical International

Investment holding
Singapore
100
100

Pte Ltd and its subsidiaries:

4

Investment holding and provision
Hong Kong
100
100

(Hong Kong) Limited
of medical and dental services

and its subsidiaries:

4

Coors Consultants
Provision of consultancy services
Hong Kong
100
100

Limited

4

Medical Properties
Investment holding, provision
Hong Kong
100
100

Co. Limited
of medical services and hospital

operation

5

Renguang Management
Management consultancy
China
100
100

Consultancy (Shanghai)

Co. Ltd

1
Raffles Health Insurance Pte Ltd
Provision of health and related
Singapore
100
100

(formerly known as
insurance

International Medical

Insurers Pte Ltd)

2
PT Raffles Medika Indonesia
Provision of hospital and
Indonesia
1003 1003

healthcare management and

consultancy services
1

Raffles Chinese Medicine
Provision of general medical services,
Singapore
100
100

Pte Ltd
acupuncture and acupressure

1
Raffles Medical China Pte Ltd
Investment holding and provision
Singapore
100
100
(formerly known as Raffles Korean
of medical services and hospital

Clinic Pte Ltd) and its subsidiaries
operation

2

Shenzhen Investments Pte Ltd
Investment holding (dormant)
Singapore
100

2

Shanghai Capital Pte Ltd
Investment holding (dormant)
Singapore
100
98
RMG Capital Pte Ltd

and its subsidiary:
Asian Healthcare Capital

Management Pte Ltd
International Medical
Investment Co., Ltd
Investment holding
(dormant)
Singapore
100
100
Property owner
Singapore
100
100
British Virgin Islands
100
100
Investment holding
(dormant)


3

4

Audited by KPMG LLP, Singapore

Not required to be audited
Shares of this subsidiary are partially held in trust by a director and an employee of the subsidiary
Audited by Lawrence Cheung C.P.A. Company Limited., Hong Kong
Audited by Shanghai Deking Certified Public Accountants Co., Ltd
Wholly owned subsidiary, which has been disposed to a third party (see note 18)
KPMG LLP is the auditor of all significant Singapore-incorporated subsidiaries. For this purpose, a subsidiary is considered
significant as defined under the Singapore Exchange Limited Listing Manual if its net tangible assets represents 20% or more
of the Groups consolidated net tangible assets, or if its pre-tax profits account for 20% or more of the Groups consolidated
pre-tax profits.
5
6
27 Dividends

After the respective reporting dates, the directors proposed a one-tier tax exempt final dividend of 4.0 cents (2012: 3.5 cents)
per share amounting approximately to $22,154,000 (2012: $19,069,000), which is based on the number of shares outstanding
as at the end of the financial year. The dividends have not been provided for and there is no income tax consequences.
28 Subsequent events

On 14 January 2014, the Group completed the acquisition of the property at 100 Taman Warna for a total purchase consideration
of $54.8 million upon fulfilment and satisfaction of all the terms of the sale and purchase agreement entered into with DBS
Bank Ltd on 13 December 2013.
On 21 January 2014, the Group had agreed to acquire from the Singapore Land Authority a land site adjacent to Raffles Hospital
for a purchase consideration of $105.2 million.
99
Shareholdings Statistics
As at 11 March 2014
Class of shares
Voting rights
- Ordinary shares
- 1 vote per ordinary share
Shareholdings Held in Hands of Public

Based on information available to the Company as at 11 March 2014, approximately 39.9% of the issued ordinary shares of the
Company is held by the public and therefore Rule 723 of the Listing Manual is complied with.
ANALYSIS OF SHAREHOLDINGS
ange of Shareholdings
R

1 - 999
1,000 - 10,000
10,001 - 1,000,000
1,000,001 and above
No. of Shareholders
No. of Shares
648
4,642
1,159
20
10.02
71.76
17.91
0.31
170,947
15,877,935
45,754,807
492,759,173
0.03
2.86
8.25
88.86
6,469
100.00
554,562,862
100.00
TWENTY LARGEST SHAREHOLDERS

As shown in the Register of Members and Depository Register
No. Name of Shareholder
No. of Shares
%

1 Raffles Medical Holdings Pte Ltd
189,489,815
34.17
2 Loo Choon Yong

55,790,298
10.06
3 DBS Nominees Pte Ltd

45,363,978
8.18
4 BNP Paribas Securities Services
33,093,437
5.97
5 Citibank Nominees Singapore Pte Ltd
32,525,805
5.87
6 DBSN Services Pte Ltd

30,115,187
5.43
7 Raffles Nominees (Pte) Ltd
23,166,423
4.18
8 HSBC (Singapore) Nominees Pte Ltd
22,852,966
4.12
9 S & D Holdings Pte Ltd

18,283,386
3.30
10 United Overseas Bank Nominees Pte Ltd
13,617,486
2.46
11 UOB Nominees (2006) Pte Ltd
8,093,023
1.46
12 Asian Medical Foundation Ltd
4,311,015
0.78
13 Tan Tiang Lee

4,222,685
0.76
14 Yang Ching Yu

2,967,712
0.54
15 Yii Hee Seng

2,592,598
0.47
16 Morgan Stanley Asia (S) Securities Pte Ltd
1,671,981
0.30
17 OCBC Nominees Singapore Pte Ltd

1,301,190
0.23
18 Tan Soo Nan

1,277,686
0.23
19 Wee Beng Geok

1,021,000
0.18
20 Low Keok Giap

1,001,502
0.18

The Company does not have any treasury shares.
100 Raffles Medical Group Annual Report 2013
492,759,173
88.86
Shareholdings Statistics (contd)

As at 11 March 2014
SUBSTANTIAL SHAREHOLDERS
Name
Direct Interest
Dr Loo Choon Yong1

Raffles Medical Holdings Pte Ltd
Deemed Interest
Total Interest
55,909,762 10.08 233,509,896 42.11 289,419,658 52.19

214,723,511
38.72
214,723,511
38.72
Aberdeen Asset Management PLC2
41,214,356 7.43 41,214,356 7.43
Aberdeen Asset Management

Asia Limited3
38,002,356 6.85 38,002,356 6.85
Note:
1 Dr Loo Choon Yong is deemed to be interested in an aggregate of 233,509,896 shares held through Raffles Medical Holdings Pte Ltd in which he is a director and
shareholder of, S & D Holdings Pte Ltd in which he is a director and shareholder of, and his spouse, Mdm Leong Lai Chee.
2 Aberdeen Asset Management PLC is deemed to be interested in an aggregate of 41,214,356 shares held by various accounts managed or advised by its subsidiaries
over which its subsidiaries have disposal and voting rights.
3 Aberdeen Asset Management Asia Limited (AAMAL) is deemed to be interested in an aggregate of 38,002,356 shares held by various accounts managed or advised
by AAMAL over which AAMAL has disposal and voting rights.

101
Notice Of Annual General Meeting

NOTICE IS HEREBY GIVEN that the 25th Annual General Meeting (AGM) of Raffles Medical Group Ltd (the Company) will be
held at 100 Victoria Street, #05-01, Possibility Room, National Library Building, Singapore 188064, on Wednesday, 23 April 2014
at 11.30 a.m. for the purpose of considering and, if thought fit, passing with or without modification, the following resolutions as
Ordinary Resolutions:
AS ORDINARY BUSINESS
1.
To receive and adopt the Directors Report, Audited Financial Statements for the year ended 31 December 2013 and the Auditors
Report thereon.
[Resolution 1]
2. To declare a one-tier tax exempt final dividend of 4.0 Singapore cents per share for the year ended 31 December 2013 in
accordance with the Scrip Dividend Scheme (2012: 3.5 Singapore cents per share).
[Resolution 2]
3.
To approve Directors Fees ($253,000) for the year ended 31 December 2013 (2012: $180,000).
[Resolution 3]
4. To re-elect Professor Lim Pin, a Director retiring in accordance with Section 153(6) of the Singapore Companies Act, to hold
office from the date of this AGM until the next AGM.
[Resolution 4]
5. To re-elect Mr Raymond Lim Siang Keat, who is retiring in accordance with Article 92 of the Articles of Association of the
Company, and who, being eligible, will offer himself for re-election.
[Resolution 5]
6. To re-elect Mr Koh Poh Tiong, who is retiring by rotation in accordance with Article 93 of the Articles of Association of the
[Resolution 6]
7. To re-elect Mr Kee Teck Koon, who is retiring by rotation in accordance with Article 93 of the Articles of Association of the
[Resolution 7]
8. To re-elect Dr Loo Choon Yong, who is retiring by rotation in accordance with Article 93 of the Articles of Association of the
[Resolution 8]
9.
To re-appoint KPMG LLP as Auditors of the Company and to authorise the Directors to fix their remuneration. [Resolution 9]
10. To transact any other business which may be properly transacted at an AGM.
[Resolution 10]
AS SPECIAL BUSINESS
11. Authority to Allot and Issue Shares

That pursuant to Section 161 of the Singapore Companies Act, Chapter 50, and Rule 806 of the Listing Manual of the Singapore
Exchange Securities Trading Limited (SGX-ST), authority be and is hereby given to the Directors of the Company to:
(a) (i) allot and issue shares and convertible securities in the capital of the Company whether by way of rights, bonus or
otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, Instruments) that might or would require shares to be
issued, including but not limited to the creation and issue of (as well as adjustments to) warrants, debentures or other
instruments convertible into shares,
at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their
absolute discretion deem fit; and
(b) (notwithstanding that the authority conferred by this Resolution may have ceased to be in force) issue shares and convertible
securities in pursuance of any Instrument made or granted by the Directors while this Resolution was in force,
Notice Of Annual General Meeting (contd)

AS SPECIAL BUSINESS (CONTD)
11. Authority to Allot and Issue Shares (contd)

provided that:
(1) the aggregate number of shares to be issued pursuant to this Resolution (including shares to be issued in pursuance of
Instruments made or granted pursuant to this Resolution) does not exceed 50% of the total number of issued shares
(excluding treasury shares) in the capital of the Company (as calculated in accordance with sub-paragraph (2) below), of
which the aggregate number of shares and convertible securities to be issued other than on a pro-rata basis to shareholders
of the Company (including shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution)
does not exceed 20% of the total number of issued shares (excluding treasury shares) in the capital of the Company (as
calculated in accordance with sub-paragraph (2) below);
(2) (subject to such manner of calculation as may be prescribed by the SGX-ST) for the purpose of determining the aggregate
number of shares that may be issued under sub-paragraph (1) above, the percentage of issued shares shall be based on
the total number of issued shares (excluding treasury shares) in the capital of the Company at the time this Resolution is
passed, after adjusting for:
(i)
new shares arising from the conversion or exercise of convertible securities;
(ii) new shares arising from the conversion or exercise of any convertible securities or share options or vesting of share
awards, which are outstanding or subsisting at the time this Resolution is passed; and
(iii) any subsequent bonus issue or consolidation or sub-division of shares.
(3) in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of the Listing Manual
of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the Articles of
Association for the time being of the Company; and
(4) (unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution shall continue in
force until the conclusion of the next AGM of the Company or the date by which the next AGM of the Company is required
by law to be held, whichever is the earlier.

[Resolution 11]
12. Authority to Allot and Issue Shares Under the Raffles Medical Group Share Option Scheme

That pursuant to Section 161 of the Singapore Companies Act, Chapter 50, the Directors of the Company be and are hereby
authorised to offer and grant options in accordance with the provisions of the Raffles Medical Group Share Option Scheme (the
Scheme) and to allot and issue from time to time such number of shares in the capital of the Company as may be required to be
issued pursuant to the exercise of such options under the Scheme, provided that the aggregate number of shares to be issued
pursuant to the Scheme shall not exceed 15% of the total number of issued shares (excluding treasury shares) of the Company
from time to time.
[Resolution 12]
13. The Proposed Renewal of Share Buy Back Mandate

That:

(a) for the purposes of Sections 76C and 76E of the Singapore Companies Act, Chapter 50, the exercise by the Directors of
the Company of all the powers of the Company to purchase or otherwise acquire issued ordinary shares in the capital of
the Company (Shares) not exceeding in aggregate the Maximum Percentage (as hereafter defined), at such price or prices
as may be determined by the Directors from time to time up to the Maximum Price (as hereafter defined), whether by way
of:
(i)
an on-market Share Buy Back (On-Market Share Buy Back), transacted on the SGX-ST through the ready market or
the special trading counter on SGX-ST trading system or on any other securities exchange on which the Shares may
for the time being be listed and quoted, through one or more duly licensed stock brokers appointed by the Company
for the purpose; and/or
103

AS SPECIAL BUSINESS (CONTD)
13. The Proposed Renewal of Share Buy Back Mandate (contd)

(ii) off-market purchase(s) (Off-Market Equal Access Share Buy Back) (if effected otherwise than on the SGX-ST or,
as the case may be, Other Exchange) in accordance with any equal access scheme(s) as may be determined or
formulated by the Directors as they consider fit, which scheme(s) shall satisfy all the conditions prescribed by the
Singapore Companies Act, and otherwise in accordance with all other laws and regulations and rules of the SGX-ST
or, as the case may be, Other Exchanges as may for the time being be applicable, be and is hereby authorised and
approved generally and unconditionally (the Share Buy Back Mandate);
(b) unless varied or revoked by the Company in general meeting, the authority conferred on the Directors of the Company
pursuant to the Share Buy Back Mandate may be exercised by the Directors at any time and from time to time during the
period commencing from the date of the passing of this Resolution and expiring on the earlier of:
(i)
(ii) the date by which the next AGM of the Company is required by law to be held;
in this Resolution:
(c)
the date on which the next AGM of the Company is held; or
Average Closing Price means the average of the last dealt prices of a Share for the five consecutive market days on
which the Shares are transacted on the SGX-ST immediately preceding the date of the On-Market Share Buy Back by the
Company or, as the case may be, the date of the making of the offer pursuant to the Off-Market Equal Access Share Buy
Back, and deemed to be adjusted, in accordance with the listing rules of the SGX-ST, for any corporate action that occurs
after the relevant five-day period;
Date of the Making of the Offer means the date on which the Company announces its intention to make an offer for an
Off-Market Equal Access Share Buy Back, stating the purchase price (which shall not be more than 5% above the Average
Closing Price of the Shares, excluding related expenses of the purchase or acquisition) for each Share and the relevant
terms of the equal access scheme for effecting the Off-Market Equal Access Share Buy Back;
Maximum Percentage means that the number of issued Shares representing 10% of the issued Shares of the Company
as at the date of the passing of this Resolution; and
Maximum Price in relation to a Share to be purchased or acquired, means the purchase price (excluding related brokerage,
commission, applicable goods and services tax, stamp duties, clearance fees and other related expenses) which shall not
exceed:
(i)
(ii) and in the case of an off-market purchase of a Share, more than 5% of the Average Closing Price of the Shares; and
in the case of a market purchase of a Share, more than 5% of the Average Closing Price (as defined above) of the
Shares;
(d) the Directors of the Company and/or any of them be and are hereby authorised to complete and do all such acts and things
(including executing such documents as may be required) as they and/or he may consider expedient or necessary to give
effect to the transactions contemplated and/or authorised by this Resolution.
[Resolution 13]
14. Authority to Issue Ordinary Shares Pursuant to the Raffles Medical Group Ltd Scrip Dividend Scheme

That authority be and is hereby given to the Directors of the Company to allot and issue from time to time such number of ordinary
shares as may be required to be allotted and issued pursuant to the Raffles Medical Group Ltd Scrip Dividend Scheme.

[Resolution 14]
BY ORDER OF THE BOARD

Kimmy Goh
Company Secretary
Singapore, 8 April 2014

Explanatory Notes:
Ordinary Resolution 2 above, if passed, will give the members the option to participate in a Scrip Dividend Scheme to receive New
Shares in lieu of part or all of the cash amount of the said dividend pursuant to the terms and conditions as set out in the Scrip Dividend
Scheme Statement duly approved by Shareholders at the Extraordinary General Meeting of the Company held on 30 April 2010.
Ordinary Resolution 3 above, if passed, is to seek approval for the payment of $253,000 to all Directors as Directors Fees for the
financial year ended 31 December 2013.
In relation to Ordinary Resolution 4 above, Professor Lim Pin (1) is considered an Independent Director and will, upon re-election,
continue to serve as a member of the Nomination & Compensation Committee.
In relation to Ordinary Resolution 5 above, Mr Raymond Lim Siang Keat (1) is considered an Independent Director and will, upon
re-election, continue to serve as a member of the Audit Committee.
In relation to Ordinary Resolution 6 above, Mr Koh Poh Tiong (1) is considered an Independent Director and will, upon re-election, continue
to serve as the Lead Independent Director and a member of the Audit Committee and the Nomination & Compensation Committee.
In relation to Ordinary Resolution 7 above, Mr Kee Teck Koon (1) will, upon re-election, remain the Chairman of the Audit Committee.
He is considered an Independent Director.
In relation to Ordinary Resolution 8 above, Dr Loo Choon Yong will, upon re-election, continue to serve as a member of the Nomination
& Compensation Committee. He is the Executive Chairman of the Company and is considered a Non-Independent Director.
Ordinary Resolution 11 above, if passed, will empower the Directors of the Company from the date of the above Meeting until the
date of the next Annual General Meeting to allot and issue shares and convertible securities in the Company up to an amount not
exceeding in total 50% of the total number of issued shares (excluding treasury shares) in the capital of the Company, for the time
being for such purposes as they consider would be in the interest of the Company, provided that the aggregate number of shares to
be issued other than on a pro-rata basis to existing shareholders pursuant to this Resolution shall not exceed 20% of the total number
of issued shares (excluding treasury shares) in the capital of the Company, for the time being.
Ordinary Resolution 12 above, if passed, will empower the Directors to issue shares in the capital of the Company pursuant to the
exercise of the options under the Raffles Medical Group Share Option Scheme provided that the aggregate number of shares to be
issued does not exceed 15% of the total number of shares issued by Company at any time.
Ordinary Resolution 13 above, if passed, will renew the Share Buy Back Mandate to permit the Company to purchase or otherwise
acquire its issued ordinary shares on the terms and subject to the conditions of the Resolution. Further details are set out in the letter
to shareholders which is enclosed with the Companys Annual Report.
Ordinary Resolution 14 above, if passed, will empower the Directors of the Company to issue ordinary shares pursuant to the Raffles
Medical Group Ltd Scrip Dividend Scheme (Scheme) to members who have elected to receive scrip in lieu of cash in respect of any
dividend to which the Scheme is applied.
Notes:
(1) The Directors, Professor Lim Pin, Mr Raymond Lim Siang Keat, Mr Koh Poh Tiong and Mr Kee Teck Koon are considered by the Board, taking into account the views
of the Nomination & Compensation Committee, to be Independent Directors.
(2) A member of the Company entitled to attend and vote at the Meeting is entitled to appoint not more than two proxies to attend and vote instead of him. A proxy need
not be a member of the Company.
(3) The instrument appointing a proxy or proxies must be deposited at the Companys registered office at 585, North Bridge Road, Raffles Hospital, #11-00,
Singapore 188770, not less than 48 hours before the time fixed for holding the Meeting.
105
This page is intentionally left blank.

IMPORTANT
(Incorporated in the Republic of Singapore)

(Company Registration No. 198901967K)
1. For investors who have used their CPF monies to buy Raffles Medical Group
Ltd shares, the Annual Report is forwarded to them at the request of their CPF
Approved Nominee and is sent FOR INFORMATION ONLY.
Proxy Form
2. This Proxy Form is not valid for use by CPF investors and shall be ineffective for
all intents and purposes if used or purported to be used by them.
I/We
of
being a member/members of Raffles Medical Group Ltd (the Company) hereby appoint:
Name
Address
NRIC / Passport
Number
Proportion of
Shareholdings (%)
Address
NRIC / Passport
Number
Proportion of
Shareholdings (%)
And/or (delete as appropriate)

Name
as my/our proxy/proxies to attend and to vote for me/us on my/our behalf, and if necessary, to demand a poll at the Annual General Meeting
of the Company to be held on Wednesday, 23 April 2014 at 11.30 a.m. and at any adjournment thereof. I/We direct my/our proxy/proxies
to vote for or against the Resolution to be proposed at the Meeting as indicated hereunder. If no specific direction as to voting is given, the
proxy/proxies will vote or abstain from voting at his/her/their discretion.
No.
To be used on a
show of hands
RESOLUTIONS
For*
Against*
To be used in the
event of a poll
For**
Against**
ORDINARY BUSINESS
1.
Adoption of Directors Report, Audited Financial Statements and Auditors Report
2.
Declaration of Final Dividends
3.
Approval of Directors Fees
4.
Re-election of Professor Lim Pin retiring under Section 153 (6) of the Companies Act
5.
Re-election of Mr Raymond Lim Siang Keat, who is retiring in accordance with Article
92 of the Articles of Association of the Company
6.
Re-election of Mr Koh Poh Tiong, who is retiring by rotation in accordance with Article
7.
Re-election of Mr Kee Teck Koon, who is retiring by rotation in accordance with Article
8.
Re-election of Dr Loo Choon Yong, who is retiring by rotation in accordance with Article
9.
Re-appointment of KPMG LLP as Auditors
10.
Transact Any Other Business
SPECIAL BUSINESS
11.
Authority to Allot and Issue Shares
12.
Authority to Allot and Issue Shares Under the Raffles Medical Group Share Option Scheme
13.
The Proposed Renewal of Share Buy Back Mandate
14.
Authority to Issue Ordinary Shares Pursuant to the Raffles Medical Group Ltd Scrip
Dividend Scheme
* Please indicate how you wish to vote For or Against with an X within the box provided.
** If you wish to use all your votes For or Against, please indicate with an X within the box provided. Alternatively, please indicate the number
of votes placed accordingly.
Dated this
day of
2014
Total Number of
Shares Held
Signature(s) of Member(s) or Common Seal

IMPORTANT: PLEASE READ NOTES OVERLEAF
107
Fold this Flap For Sealing
Affix
Stamp
Here
Please
The Company Secretary

Raffles Medical Group Ltd
#11-00 Raffles Hospital
Singapore 188770
2nd Fold Here
Notes:
A member of the Company entitled to attend and vote at the Annual General Meeting is entitled to appoint not more than two proxies to attend and
vote instead of him. Such proxy need not be a member of the Company. Where a member appoints two proxies, the appointments shall be invalid
unless he specifies the proportion of his shareholding (expressed as a percentage of the whole) to be represented by each proxy.
The instrument appointing a proxy or proxies (together with the power of attorney, if any, under which it is signed or a notarially certified copy thereof)
must be deposited at the registered office of the Company at 585 North Bridge Road, Raffles Hospital, #11-00, Singapore 188770, not less than 48
hours before the time fixed for the Annual General Meeting.
A corporation which is a member may authorise by resolution of its directors or other governing body, such person as it thinks fit to act as its
representative at the 25th Annual General Meeting, in accordance with Section 161 of the Companies Act, Chapter 50 of Singapore.
Please insert the total number of shares held by you. If you have shares entered against your name in the Depository Register (as defined in Section
130A of the Companies Act, Chapter 50 of Singapore), you should insert that number of shares. If you have shares entered against your name in
the Depository Register and shares registered in your name in the Register of Members, you should insert the aggregate number of shares entered
against your name in the Depository Register and registered in your name in the Register of Members.
The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, improperly completed or illegible or where the
true intentions of the appointor are not ascertainable from the instructions of the appointor specified in the instrument appointing a proxy or proxies.
In addition, in the case of members whose shares are entered in the Depository Register, the Company may reject any instrument appointing a proxy
or proxies lodged if such members are not shown to have shares entered against their names in the Depository Register as at 48 hours before the
time appointed for holding the Annual General Meeting, as certified by The Central Depository (Pte) Limited (CDP) to the Company.
3rd Fold Here
Company Registration No. 198901967K

Raffles Hospital #11-00
Singapore 188770
Telephone : (65) 6311 1111
Fascimile : (65) 6338 1318
www.rafflesmedicalgroup.com

RMG Annual Report 2013

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RMG Annual Report 2013

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ANNUAL REPORT 2013

We put you and your well

We will uphold your trust

We will continually seek

Our patients health is at the core of what

Raffles Medical Group Annual Report 2013

We dedicate and combine our

Your Needs, Our Expertise

Your Trust, Our Mission

by the Singapore Exchange

Your Trusted Partner For Health

Healthcare Services Division

Hospital Services Division

Revenue from Healthcare

Revenue from Hospital

Profit After Tax

Group achieved 9.4% growth

Profit after tax grew

Operating profit grew by

Raffles Medical Group Annual Report 2013

Group Revenue ($m)

Group Profit After Tax ($m)

Return On Equity (%)

Earnings Per Share (cents)

Earnings Before Interest, Taxes,

Profit Before Tax

Profit After Tax

Diluted Earnings per Share (cents)

Your Trusted Partner For Health

Dental Surgeon Dr Edgar Kieu encourages his young patient

Raffles Medical Group Annual Report 2013

Your Trusted Partner For Health

We strive to serve every one

Raffles Medical Group Annual Report 2013

Raffles Holland Village

2013 was another good year for the Group. We

The Group completed the acquisition of a site at Holland Village from

Your trusted partner for health

Growth in the Region

Corporate Social Responsibility

I am confident we will continue to grow in Singapore and into the

Raffles Hospital Extension

It is also my pleasure to welcome Mr Raymond Lim to our Board. We

Dr Loo Choon Yong

Your Trusted Partner For Health

DR LOO CHOON YONG

Raffles Medical Group Annual Report 2013

MR KOH POH TIONG

MBA Advisory Board of the Nanyang Technological University. For

MR KEE TECK KOON

DR WEE BENG GEOK

MR TAN SOO NAN

Director with effect from 24 February 2014.

PROFESSOR LIM PIN

MR RAYMOND LIM SIANG KEAT

Further Information on Board of Directors

Dr Loo Choon Yong, 64

Mr Kee Teck Koon, 57

Academic and Professional Qualifications:

Academic and Professional Qualifications:

Non-Independent Executive Director

Board Committee(s) Served On:

Board Committee(s) Served On: